Bosnian media releases Blinken's full letter warning sanctions against Bosnia

The country is governed and managed along ethnic lines, defined by the agreement, and has a central government, which is often dysfunctional.

Dodik, the Serbian representative in the presidency, has threatened to withdraw from state-level institutions, including the judiciary, military and tax administration of Bosnia.

He has put aside international concerns that such an agenda could trigger new conflicts in Bosnia.

The United States has said earlier that “there is no constitutional way” for the Serb majority entity to withdraw unilaterally from national institutions.

Dodik has said that the institutions he wants to leave are not included in the constitution issued by Dayton, but are created through amendments.

Presenting a report to the UN Security Council this month, the international representative in Bosnia, Christian Schmidt, has said the conflict and division in Bosnia “are very real”.

According to him, Dodik's actions present “existential threats” for the Dayton Agreement.

In his letter, Blinken said steps to undermine Bosnia's institutions would jeopardise not only the country's European perspective, but also undermine regional stability and the fragile economy.

The United States is Bosnia and Herzegovina's most powerful partner in addressing power-sharing concerns”, Blinken said.