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Secret Swede Brings Peace to Yugoslavia

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BBC News
March 9, 2000

A Swedish-born financier played a key role in persuading the Yugoslav government to accept the peace deal ending the Kosovo war, according to investigations by the BBC documentary: "Moral Combat: Nato at War". Peter Castenfelt, chairman of the London-based financial firm Archipelago Enterprises, travelled secretly to Belgrade during the war for a series of meetings with Yugoslav President Slobodan Milosevic. Operating behind the scenes, the figure whose role in the neotiations was hitherto unknown moved through secret channels to the Yugoslav leadership opened by the German and Russian governments.


His meetings are believed to have cleared the way for Mr Milosevic's acceptance of the peace plan on 4 June. Briefed by Russian officials during a visit to the Kremlin in late May, Mr Castenfelt played what sources say was a critical role in convincing Mr Milosevic that Moscow would not come to his aid. Both Russia and Germany were keen to bring an early end to the war, fearing the political and military consequences of allowing it to drag on.

Trusted adviser
A trusted adviser to former President Boris Yeltsin and the Russian security services, Mr Castenfelt had earlier played a key role in securing badly needed loans for Russia from the International Monetary Fund.

During the war Western governments insisted that there would be no negotiation with Mr Milosevic, but it is unlikely that Mr Castenfelt could have operated without the knowledge of the NATO partners. According to Karl Hesier, adviser to German Chancellor Gerhard Schroder, Mr Castenfelt was driven to the Yugoslav border by the Russian secret service where a car was waiting to take him to Belgrade.

Peace plan

At the time, Moscow was finalizing the details of a peace plan with NATO officials and according to Mr Heiser the message the Swede had to deliver was a simple one: "The security apparatus in Moscow said 'end the war'. Or 'here are the conditions that look acceptable to us, and we cannot help you beyond it, so exit now,'" Mr Heiser told the BBC. Mr Castenfelt is believed to have stayed in Belgrade - then still under NATO bombardment - from 29 May until 4 June, during which time he held a series of meetings with Mr Milosevic.

As Mr Castenfelt quietly departed, the official European Union envoy Marti Ahtisaari and his Russian counterpart, Viktor Chernomyrdin, secured President Milosevic's acceptance of the international peace plan. Six days later, as Yugoslav forces began to leave Kosovo, Nato officially suspended its air campaign.


Castenfelt: Mystery mediator
May 1999: Castenfelt briefed by Russian officials in Kremlin
May 29: Driven to Yugoslav Border
June 1-4: Holds secret meetings with Milosevic
June 2: Belgrade under heavy bombardment from NATO planes;
     Russian and EU peace envoys arrive in Belgrade
June 4: Castenfelt leaves Belgrade, Milosevic agrees to peace deal
June 9: Yugoslav commanders agree withdrawal
June 10: NATO bombing campaign ends


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