The Contact Group's troika of mediators - Russia, the United States and the European Union - submitted to the UN Security Council and UN Secretary General Ban Ki-moon a report on December 10 saying that the parties had failed to reach an agreement after "120 days of intensive negotiations."
"We believe that the efforts by the troika have shown that a negotiated solution is possible, that the two sides can reach a compromise and deliver a solution to strengthen stability in the Balkans. Serbia would benefit the future of Kosovo, the European Union, and reinforce rather than weaken international law," Vitaly Churkin said during a TV link from New York, organized by RIA Novosti.
He said the UN Security Council should give a signal to the parties concerned that the international community is expecting them to continue their discussions.
The Serb delegation has been able to refine some elements of its position, which could also be acceptable to Pristina, he said, adding that Belgrade is prepared to grant Pristina full freedom in the economic realm, in particular the freedom to establish contacts with international financial institutions, as well as allow it to have its their own flag, gendarmerie and police.
The only two things on which Belgrade is not prepared to give way are foreign policy and border control.
Russia's ambassador said Belgrade had made it clear that it did not intend "to reestablish physical control of Kosovo or create a situation where Belgrade would be running the affairs of Kosovo again."
Kosovo is ready to declare unilateral independence, but will coordinate its moves with the U.S. and the EU, the leader of the province's Democratic Party said on Friday.
Former rebel leader Hashim Thaci, who has vowed to declare independence in Kosovo, won parliamentary elections in the predominantly Albanian province on November 17, which was boycotted by the ethnic Serb population (around 6%).
"Yes, we will proclaim the province's independence, even unilaterally. When? Kosovo is ready [to do that] even today. Tomorrow may be too late. But we will seek to coordinate everything with Washington and Brussels," he told Italy's Corriere della Sera.
At an ongoing summit, the EU leaders said Serbia could be offered an accelerated path towards EU membership. But, Belgrade said earlier it would not trade in Kosovo's independence just to join the EU.
Serbian Foreign Minister Vuk Jeremic rejected any such trade off: "It would be an indecent proposal, and European leaders are decent people, they have not made such an offer," he told reporters in Belgrade on Friday, according to Reuters.
At a UN Security Council session on Wednesday, the United States rejected Russia's proposal to continue talks over the future status of Serbia's predominantly Albanian province.
The UN official deadline for an agreement between Belgrade and Pristina on Kosovo ran out Monday, and the province's leaders have said they intend to unilaterally declare independence early in 2008. The United States and leading EU powers have said they will recognize Kosovo's independence when a declaration is made.
However, Russia has warned of a chain reaction if the province breaks away from Serbia, causing other separatist regions, including those in the former Soviet Union, to follow suit.
Kosovo has been a UN protectorate since 1999, when NATO's bombing of the former Yugoslavia ended a war between Serb forces and ethnic Albanians.
