International sanctions against Serbia and Montenegro

In 1991, the breakup of Yugoslavia was in progress, with the westernmost republics of Slovenia and Croatia declaring independence, and in the second part of the year, the Croatian War of Independence was in full swing with the 1991 Yugoslav campaign in Croatia. On 25 September 1991, the United Nations Security Council Resolution 713 established an embargo on weapons and military equipment to Yugoslavia, which was intended to support the Conference on Yugoslavia, which was meant to resolve the situation peacefully and through negotiation. On November 8, 1991, the European Economic Community imposed the first economic sanctions against former Yugoslav republics, while on December 2 it lifted sanctions and reinstated economic aid to all republics other than Serbia and Montenegro. The sanctions forbade the EEC's members from importing textiles from Yugoslavia and suspended an aggregate total of $1.9 billion in EEC aid packages which had been promised to Yugoslavia before twelve cease-fires failed to materialize in the Croatian war zone. At the turn of 1992, the dissolution of SFR Yugoslavia was internationally recognized. The former Yugoslav republics of Serbia and Montenegro formed a new smaller state called the Federal Republic of Yugoslavia. By the end of spring 1992, the Bosnian War started in the Republic of Bosnia and Herzegovina. ==History==

On May 30, 1992, the United Nations Security Council passed UN SCR 757 by a 13–0 vote. It banned all international trade, scientific and technical cooperation, sports and cultural exchanges, air and sea travel, and travel of government officials from the Federal Republic of Yugoslavia. French President François Mitterrand initially delayed the passing of Resolution 757 when he proposed that the sports ban be removed, but instead opted to keep the sports ban in exchange for written clarification that Serbian combatants were not solely responsible for the War in Croatia. The 1 October 1996 United Nations Security Council Resolution 1074 terminated all previous resolutions against FR Yugoslavia. In spite of the lifting of UN sanctions, the United States maintained an "outer wall" of sanctions, preventing Yugoslavia from becoming a member of international institutions. ==Hyperinflation of the Yugoslav dinar under sanctions==

Starting from 1992, the money supply of the Yugoslav economy grew enormously to fund the wars, resulting in a protracted hyperinflation episode which lasted for a total of 25 months. In 1993, the dinar recorded a monthly inflation rate of 313 million percent. For several months afterwards, the money supply stabilised, so the dinar recorded virtually no devaluation, and shortages of various necessities were noticeably reduced. As a result of the success of the new dinar, Avramović was named governor of the National Bank of Yugoslavia on March 2, 1994. Avramović told The New York Times that he thought his fiscal program could be sustained in spite of the sanctions, saying the following: Economists disagreed whether hyperinflation could be avoided with the international sanctions. International sanctions were re-instated in 1998 due to the Kosovo War, and by 1999, the Yugoslav dinar had devalued to 30 dinars for a Deutsche Mark. ==Effects on the people of Yugoslavia==

In 1989, the average income of inhabitants in Yugoslavia was approximately $3,000 per year. In October 1992, less than a year after the first sanctions were implemented, economist Miroljub Labus estimated that the average income at the time had fallen to approximately $1,500 per year. As a result of the oil and gas restrictions imposed by the sanctions, owners of private vehicles in Yugoslavia were allotted a ration 3.5 gallons of gasoline per month by October 1992. The gas stations were sold to individuals with large amounts of money and street authority; paramilitary leader Željko "Arkan" Ražnatović acquired several gas stations from the state at this time. As a result, the safety GSP buses was gradually neglected, to the point in the late 1990s (after which sanctions had been re-introduced after the Kosovo insurgency started) where a passenger sitting over one of the wheels on the bus fell through the rusted floor and was instantly killed. A Central Intelligence Agency assessment on the sanctions filed in 1993 noted that "Serbs have become accustomed to periodical shortages, long lines in stores, cold homes in the winter and restrictions on electricity". Medicinal supplies in hospitals experienced shortages in antibiotics, vaccines, and anti-cancer drugs. In October 1993, the office of the United Nations High Commissioner for Refugees in Belgrade estimated that approximately 3 million people living in Serbia and Montenegro were living at or below the poverty line. By late 1993, hospitals lacked basic antibiotics and functioning equipment such as X-ray devices. In 1993, the president of the Republic of Montenegro within Yugoslavia, Momir Bulatović, said that the sanctions were causing massive food shortages in Montenegro. ==Underground economy==

The implementation of sanctions corresponded with the emergence of an underground economy. Although there was no legal import of cigarettes during the sanctions, a market of low-quality and fake cigarettes, alcohol, and various street drugs took in its place. Although the sanctions included restrictions on gasoline, smugglers tried to profit by purchasing gas from across the Yugoslav border. Although some smugglers made large profits, the business was very risky, since they made their purchases in hard cash. Many people who fell for the pyramid banks were left homeless. ==In popular culture==

• Dnevnik uvreda 1993 (1994) • Tamna je noć (1995) • See You in the Obituary (1995) • The Wounds (1998) • Black Cat, White Cat (1998) ==Notes==