At the same time, gray market smuggling of a variety of goods, including cigarettes, food, and oil, became a standard practice during the UN sanctions. The federal government initiated a very public campaign against these gray market activities during the late spring and summer of 1997, but the results are not yet clear. Widespread smuggling and the existence of a largely cash-based economy are important impediments to the ability of enforcement authorities to prevent narcotics trafficking. FRY authorities admit that heroin trafficking through the country is growing and blame most of it on Albanian Kosovars and foreigners. These officials point to frequent drug-related arrests of Albanian Kosovars in neighboring and western European countries.
Officials are also concerned about indications that domestic consumption of heroin is growing.
Country Actions Against Drugs in 1997 Law Enforcement Efforts . The following incident involving distribution was reported in the press. On November 25, two ethnic Albanians were arrested in Kosovo for attempting to sell 136.7 grams of heroin in Bujanovack Banja, near Vranje in southern Serbia. An additional 102 grams were reportedly found in one of their homes'. No examples of official involvement in narcotics smuggling have surfaced.