PM Albin Kurti claims ‘victory’ and vows to form government but analysts warn of prolonged crisis and instability

The governing party of the prime minister, Albin Kurti, is on track to secure the most seats in Kosovo’s parliament but will lack the numbers for a majority, the election commission has said.

Sunday’s vote pitted Kurti’s campaign to stamp out the influence of Serbia, more than 15 years after Kosovo declared independence, against the opposition’s vow to boost the economy in one of the poorest corners of Europe.

Pristina labels incident ‘terrorist act’ by neighbouring country, activating armed forces to prevent more attacks

Kosovo’s interior minister, Xhelal Sveçla, said on Saturday that police had arrested eight people after an explosion hit a canal that sends water to its two main power plants, an incident Pristina labelled a “terrorist act” by neighbouring Serbia.

Serbia’s president, Aleksandar Vučić, denied what he said were “baseless accusations” about Belgrade’s involvement in the incident, which occurred about 7pm (6pm GMT) on Friday.

Risk of raising tensions after parallel institutions serving Serb minority are declared illegal and shuttered by ethnic Albanian-led government

Kosovo authorities on Friday closed five parallel institutions working with the ethnic Serb minority, a move that was immediately criticised by the US and could further raise tensions with neighbouring Serbia.

Elbert Krasniqi, Kosovo’s minister of local administration, confirmed the closure of five so-called parallel institutions in the north – where most of the ethnic Serb minority lives – writing online that they “violate the Republic of Kosovo’s constitution and laws”.