Visiting U.S. envoy Frank Wisner rallied Pristina nerves, tested by mixed signals from Contact Group members over whether status decision will be delayed to 2007 in event of December elections in Serbia. Wisner said new Serbian constitution’s claims to Kosovo irrelevant as Serbia had lost sovereignty over province in 1999; said U.S. would pursue “independence…sorry, final status” by year-end. UN envoy Ahtisaari’s draft status document leaked to Kosovo media 30 October: proposes independence with international oversight. Ahtisaari deputy said status decision likely February or March 2007. Serbian constitutional referendum (see Serbia below) saw high Kosovo Serb turnout; North Mitrovica hailed positive result as guarantee Serbia will retain Kosovo. Kosovo Assembly called referendum “act of aggression” but Albanians remained calm. Democratic League of Kosovo branch elections marred by low- level violence and accusations of foul play.

Contact Group affirmed aim of negotiated settlement by end 2006 after meeting 20 September. Group instructed UN envoy Ahtisaari to prepare settlement proposal, and requested further Pristina-Belgrade talks despite deputy UN envoy Rohan’s 15 September assessment that stalemate reached. Protests held in several Albanian-majority municipalities against proposals to create or expand Serb-majority municipalities. Kosovo Assembly attacked negotiation team for secrecy and concessions, while Assembly president Berisha warned of revolt if independence delayed. LDK party leadership campaign marred by car bombs in Gjilan and Ferizaj in apparent intra-party power struggle. Grenade attack injured 4 elderly Serb returnees in western town Klina.

Sixth round of decentralisation talks in Vienna ended without progress 7 August. Kosovo Serb representatives, refusing label of minority, boycotted first round of negotiations on minorities 8 August, which failed to produce results. UN envoy Ahtisaari and team subsequently negotiated altered decentralisation proposal with Pristina. Contact group called for practical solution for North of province, expressing concern over deteriorating political and security situation. UNMIK reinforced international police presence in area but tensions stoked by grenade attack on north Mitrovica cafe 26 August; 7 Serbs and 2 foreigners wounded. German diplomat Joachim Rucker appointed new head of UNMIK from 1 September.

Opening round top-level status talks between Serb and Kosovo leadership, held in Vienna 24 July, produced no breakthrough, with both sides reiterating known positions: Kosovo president Sejdiu formally requested independence while Serbian PM Kostunica flatly rejected it, offering “substantial autonomy”. Earlier talks on cultural heritage and decentralisation also ended without progress. EU foreign policy chief Solana and Enlargement Commissioner Rehn presented plan outlining future EU role in Kosovo 17 July; endorsed by EU member states.

Sudden departure of UNMIK Chief Soren Jessen- Petersen 30 June, and North Kosovo Serb measures to sever ties with Kosovo central authorities, prompted fears of instability ahead of status decision. Jessen-Petersen announced 12 June would step down with no successor designated and called for early decision on status. Russia hardened stance against early status determination. UNMIK postponed municipal elections until after status decision. 3 northern Serb-majority municipalities declared “state of emergency” in reaction to shooting incidents in north, including 1 June murder of Serb youth they say ethnically motivated. Serbs announced boycott of regional police and demanded role for police from Serbia, threatening formation of own defence militias otherwise. In effort to calm north, KFOR accelerated reopening of base, UN sent 500 extra international police and withdrew Albanian officers. Some Serbs returned to west Kosovo, but elderly returnee found shot dead 20 June. 82 pro-independence protestors arrested for picketing UNMIK HQ 9 June; 116 arrested for blocking highway ahead of Serbian PM Kostunica’s visit. Kostunica visited Gracanica, commemorating 1389 battle of Kosovo Polje and declaring Kosovo will always be part of Serbia.

Fourth round of direct talks between Belgrade and Pristina in Vienna ended without agreement on decentralisation 5 May. Fifth round, on protection of cultural and religious heritage, produced agreement although some differences remained 23 May. 31 May talks on assigning property and debt produced sharp disagreement. Contact Group met in Paris 26 May; discounted request from Serbia for talks to focus immediately on defining Kosovo’s status. Serbia presented reformulated status proposal: 20-year agreement with UN for autonomy. Shooting near Mitrovica wounded 2 Serbs 11 May. UN police fired teargas on Krusha e Vogel/Mala Krusa villagers who stoned UN convoy escorting defence lawyers of Hague tribunal indictee Dragoljub Ojdanic 25 May; charges against Ojdanic include killing of more than 100 men from village in 1999. PM Ceku held talks with Macedonian PM Buckovski to diffuse tension over border demarcation dispute; agreed only “technical” issue. NATO announced completion of KFOR command structure “streamlining” to enhance force’s capacity to respond to ethnic violence.

Third round of talks on decentralisation ended 3 April with no agreement; fourth round due 4 May to discuss numbers and borders of new Serb-majority municipalities and divided Mitrovica; Kosovo Albanian team reportedly preparing bold concessions. EU established planning team to ensure smooth transition from UNMIK to proposed EU crisis management mission on rule of law and police matters. PM Ceku promised to tackle corruption after warnings could stymie independence; some ministers rumoured for dismissal. Ceku visited village along border with Macedonia, promising residents would renegotiate 2001 Belgrade/Skopje border agreement. Macedonia has insisted demarcation of existing frontier be condition of final status.

Provisional government revitalised after Kosovo Protection Corps Head and former KLA commander Agim Ceku elected new PM by parliament 10 March, following Bajram Kosumi’s resignation. Serbia condemned nomination. Ceku promised to reach out to Serb minority and appointed Serb as deputy minister of interior. UNMIK chief Jessen- Petersen pushed for Serbs to end boycott of institutions, but Serbia responded with call for 17,000 Kosovo Serbs to quit UNMIK and Kosovo government jobs. Second round of status talks on decentralisation held in Vienna; third round due 3 April, with divided Mitrovica in spotlight. UK FM Straw argued Kosovo’s independence “almost inevitable”; Russia and China reportedly indicated would not block it in UN Security Council. Mitrovica Serbs protested after Serb youth seriously wounded in stabbing 28 March; 2 policemen dismissed over issue.

President Ibrahim Rugova, longstanding advocate of Kosovo independence, died 21 January. Rugova’s party, Democratic League of Kosovo, moved quickly to fill vacuum, indicating it will nominate party stalwart Fatmir Sejdiu for president, to be elected by Assembly after mourning period. First round of status discussions covering decentralisation in Kosovo postponed to February. Contact Group met at ministerial level in London 31 January; agreed negotiated settlement to be reached in 2006 must be acceptable to people of Kosovo - a nod toward independence.

UN Special Envoy Marti Ahtisaari reported to UNSG Annan in New York 19 December concluding first phase of contacts with regional actors; said talks planned for January should first focus on decentralisation. Report by EU foreign policy chief Javier Solana and Enlargement Commissioner Olli Rehn recommended increased EU involvement after status talks, including potentially central policing role. UNMIK authorised establishment of justice and interior ministries, seen as important steps in building state capacity in province. Retired Ambassador Frank Wisner appointed U.S. envoy for status talks. Security stepped up after several incidents, including grenade attack on bus near Prizren 4 December and reported shootings in Mitrovica end of month.