Disputes—international: disputes with Bosnia and Herzegovina over Serbian populated areas; Albanian majority in Kosovo seeks independence from Serbian republic; Serbia and Montenegro is disputing Croatia's claim to the Prevlaka Peninsula in southern Croatia because it controls the entrance to Boka Kotorska in Montenegro; Prevlaka is currently under observation by the UN military observer mission in Prevlaka (UNMOP); the border commission formed by The Former Yugoslav Republic of Macedonia and Serbia and Montenegro in April 1996 to resolve differences in delineation of their mutual border has made no progress so far

Illicit drugs: major transshipment point for Southwest Asian heroin moving to Western Europe on the Balkan route

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