"The behaviour of President Sarovic and others was not only wrong but represents the mindset of people who are still living in the past," Robertson said in a statement.

A report by Western intelligence services linked Sarovic to secret arms sales by the Serb military aviation company Orao to Iraq while he was president of the Serb part of the country from 2000 to 2002.

A NATO investigation had also implicated Sarovic in another scandal that charged Bosnian Serb military intelligence with spying on the NATO-led peacekeeping Stabilisation Force (SFOR) in Bosnia.

Robertson welcomed Sarovic's decision. "As the representative for Republika Srpska (RS), it was the only possible course of action he could take given his political responsibility," he said.

Meanwhile the European Union's commissioner for external relations, Chris Patten, also welcomed the move, saying it was "the right response to the Orao arms-to-Iraq affair.

"The illegal sale of military equipment to Iraq, in contravention of UN Security Council Resolutions, has severely damaged the interests of (Bosnia) and all its citizens," he said.

"This should draw a line under this affair, and allow (Bosnia) to move forward rapidly with the process of reform," Patten said.

SPACE.WIRE