The U.S. Treasury has lifted sanctions on Bosnian Serb leader Milorad Dodik and his family, marking a significant shift in U.S.-Bosnian relations. The decision followed Dodik’s formal agreement to step down from his position in Republika Srpska, the Serb-majority entity within Bosnia and Herzegovina. The sanctions, initially imposed by the Biden administration in 2022 and expanded under his tenure, were aimed at addressing Dodik’s alleged attempts to undermine the 1995 Dayton Peace Agreement, which established Bosnia and Herzegovina as a nation comprising two autonomous entities. The Treasury’s move was announced on Wednesday, following Dodik’s formal agreement to relinquish his claim to power in Republika Srpska. In a post on X, Dodik expressed his gratitude to former U.S. President Donald Trump, calling the decision a correction of a grave injustice inflicted upon Republika Srpska and its representatives. He stated that the accusations made against him were nothing but lies and propaganda. The decision to lift the sanctions follows a conflict between Dodik and Bosnia’s central government in Sarajevo, as well as with Christian Schmidt, the German diplomat leading the Office of the High Representative (OHR). A Bosnian court previously handed Dodik a prison sentence, which was later reduced to a fine. A new regional election is scheduled for November. Dodik has consistently opposed Bosnia’s integration into NATO and the European Union, advocating instead for closer ties with Serbia and Russia. In an interview earlier this month, he criticized EU leaders for adopting authoritarian and militaristic policies to conceal their failures.