The Serb mayor of North Mitrovica, Goran Rakic, told an extraordinary session of the local assembly in the northern Kosovo town on Tuesday that he is resigning because of Pristina's decision to increase import tariffs on Serbian goods and because of violations of the human rights of Serbs living in Kosovo.
Kosovo Prime Minister Ramush Haradinaj has been criticised for again meeting a controversial figure and power-broker in the Serb-run northern municipalities, Milan Radoicic.
The head of the Belgrade-backed Kosovo Serb party, Lista Srpska, Goran Rakic and Radoicic - who was recently elected as the deputy head - met Haradinaj at his office on Thursday.
After Serbian state-owned news agency Tanjug reported that a delegation from the main Kosovo Serb political party Srpska Lista (Serbian List) was in Washington to meet officials from the State Department, Congress and the Pentagon, the State Department said that it did not have any such meeting to announce.
The formation of the ZSO is an obligation undertaken by the authorities in Pristina under the 2013 Brussels agreement, but it has not yet been fulfilled.
The announcement today was made by Goran Rakic, after representatives of the Serb List held a meeting in Belgrade with President Aleksandar Vucic, and Director of the Government Office for Kosovo and Metohija Marko Djuric.