Negotiators of Serbia and self-declared Kosovo at a meeting in Brussels on Wednesday reached an agreement to resolve the dispute over license plates, which will avoid escalation, EU High Representative for Foreign Affairs and Security Policy Josep Borrel said.

"Very pleased to announce that Chief Negotiators of Kosovo & Serbia under EU-facilitation have agreed on measures to avoid further escalation and to fully concentrate on the proposal on normalisation of their relations," he wrote on his Twitter account. "Serbia will stop issuing license plates with Kosovo Cities’ denominations & Kosovo will cease further actions related to re-registration of vehicles."

"I will invite the parties in the coming days to discuss next steps," he added.