EU prepares to lift Yugoslav sanctions

The EU is promising aid to rebuild Yugoslavia

The European Union is expected to begin lifting sanctions against Yugoslavia on Monday in what is being seen as the first stage in the country's international rehabilitation.

A meeting of foreign ministers in Luxembourg is expected to approve the removal of the oil embargo and ban on flights to Yugoslavia.

As newly-installed President Vojislav Kostunica consolidates his position - attempting to oust at least one key Milosevic ally - there has been no new word on the whereabouts of the ousted president himself.

But on Monday Mr Milosevic's son Marko was turned back as he attempted to enter China, which had been seen as a possible bolthole for the family.

The EU ministers - as well as lifting some sanctions - are also expected to prepare a series of aid packages to assist with the rebuilding of Yugoslavia's war-shattered infrastructure.

Vojislav Kostunica needs to deal with Milosevic loyalists

However, some financial sanctions, and travel restrictions against Yugoslav citizens are expected to remain in place due to fears that their removal might benefit supporters of Mr Milosevic.

The wide-ranging sanctions were imposed in 1999 as part of an international effort to stop Serb-sponsored massacres of ethnic Albanians in Kosovo.

As he entered the meeting, UK Foreign Secretary Robin Cook said the EU had to give a "swift, generous and welcoming" response to the new government in Yugoslavia.

Mr Cook said it was too early to say if future aid should be conditional on Mr Milosevic and other indicted war criminals being handed over to the War Crimes Tribunal at The Hague.

Joscha Fischer - playing down handover of Milosevic

However, the German Foreign Minister, Joschka Fischer said this was "not a top priority".

Details of the aid packages are likely to be revealed at an EU summit in Biarritz at the end of the week to which Mr Kostunica has been invited.

One of the biggest challenges facing Mr Kostunica, is that Mr Milosevic's supporters still dominate power structures in the Republic of Serbia.

Kostunica's challenges

The BBC Belgrade correspondent, Jacky Rowland, says Mr Milosevic may try to make his influence felt through these bodies.

The Serbian parliament is shortly to begin a meeting which will debate the removal of one of Mr Milosevic's key supporters, the powerful Serbian Interior Minister, Vlajko Stoiljkovic, who heads the feared MUP special police.

The Radical Party of Vojislav Seselj is also seeking the abolition of laws that limit the freedom of the independent media and the free speech of university professors.

Milo Djukanovic has sought independence for Montenegro

Our correspondent says that President Kostunica will be pushing for early elections in Serbia but that Mr Milosevic is likely to resist for fear of losing further ground in a popular ballot.

Another tricky task facing Mr Kostunica will be shoring up the increasingly fractious Yugoslavian Federation.

An ardent Serb nationalist, the new president has listed the rebuilding of ties between Serbia and its smaller sister republic Montenegro as one of his main priorities.

Independence demands

He has also restated his determination not to give up control of the Serbian province of Kosovo, which is currently under UN administration and where a majority want independence.

Montenegrin President Milo Djukanovic has welcomed the removal of President Milosevic, but reiterated his demand that Montenegro's role in the federation needs to be re-assessed.

Hundreds of thousands of Kosovans were forced to flee last year

And leaders of Kosovo's ethnic Albanian majority have stressed that the removal of Mr Milosevic will not end their calls for independence.

On Sunday, Mr Kostunica received a boost when US Secretary of State Madeleine Albright refused to link economic aid to Mr Milosevic's extradition.

She also expressed her confidence that support for charges against Mr Milosevic and other indicted war-criminals would grow among ordinary Serbs.