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290<br />

ChApter 4<br />

international community. With Putin and Koštunica in power in<br />

the early twenty-first century, the Russian-Serbian connection was<br />

strong.<br />

In consolidating Russia as a global power, Putin made skilful use<br />

of the unfinished process of the break-up of Yugoslavia. Interestingly,<br />

in spite of declaring that the preservation of the fry was in its<br />

interests, Russia quickly recognized an independent Montenegro and<br />

urged Koštunica to follow suit. In the case of Kosovo, Russia sought<br />

to manipulate the situation there with a view to controlling similar<br />

situations closer to home. In June 2008, Russia blocked a Security<br />

Council resolution designed to replace Resolution 1244; the new resolution<br />

would have accorded Kosovo full recognition as an independent<br />

state, with membership in the United Nations. The move gave<br />

rise to hopes in Serbia that Russia would play the role of Serbia’s diplomatic<br />

protector, especially with regard to the partition of Kosovo<br />

and Bosnia. These hopes have been stoked by Russian arguments that<br />

Republika Srpska has the right to follow the precedent set by Kosovo<br />

and secede.<br />

Russia’s motives in the Balkans are economic and strategic. Economically,<br />

it wants to develop closer ties with the Balkans, especially<br />

in the energy field. Strategically, it seeks to assert its continuing relevance<br />

as an actor in the region (for instance, it challenges the Europe<br />

Union to demonstrate that it has the mechanisms to maintain order<br />

in the Balkans), even though it refrains from engaging wholeheartedly<br />

there.<br />

Financing the War<br />

Yugoslavia’s armaments industry—a hypertrophied sector of<br />

the economy for a country with a relatively small population—was<br />

a top earner of foreign exchange. Its factories, controlled by the ypa<br />

and located mainly in Bosnia-Herzegovina and Serbia, made infantry<br />

and other light weapons and modern tanks, guns, and electronic

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