Standoff at Milosevic villa

Residents watch as Yugoslav special forces move in and Milosevic remains defiant.

BELGRADE, Yugoslavia (CNN) -- Former Yugoslav leader Slobodan Milosevic is under siege in his home after police tried to issue him with an arrest warrant.

Masked police stormed Milosevic's home to serve the warrant but were met with gunfire from the ex-leader's bodyguards.

Serbian Interior Minister Dusan Mihajlovic said police were authorised to arrest Milosevic but not whether the warrant was in connection with alleged war crimes in Kosovo or on domestic corruption charges.

But Serbian TV has reported that Milosevic has vowed not to be taken alive.

Milosevic refused to accept the arrest warrant saying the officers were “NATO lackies.”

The operation to arrest Milosevic came as a U.S. deadline approached for Yugoslavia to co-operate with the international war crimes tribunal.

AUDIO CNN's Walter Rodgers: Milosevic is defiant 580K/53 sec. AIFF or WAV sound Timing of the arrest 490K/45 sec. AIFF or WAV sound    VIDEO CNN's Alessio Vinci reports on Milosevic's rule over Yugoslavia and his arrest by the police he once commanded Play video (QuickTime, Real or Windows Media) See police storm Milosevic's residence as shots are fired Play video (QuickTime, Real or Windows Media) CNN's Jonathan Mann speaks with Florence Hartmann of the War Crimes Tribunal about the reported arrest of Milosevic Play video (QuickTime, Real or Windows Media) Jonathan Mann speaks with Serbian Deputy Prime Minister Zarko Kovac about Milosevic's arrest Play video (QuickTime, Real or Windows Media)   AUDIO CNN producer Zoran Maric recounts the gunshot incident outside Milosevic's home 306K/27 sec. AIFF or WAV sound   TRANSCRIPT CNN's Joie Chen talks to Andrea Koppel about the U.S. stance on Milosevic   ALSO Milosevic: Accused mastermind of ethnic cleansing Milosevic arrest could mean $50 million for Yugoslavia Milosevic: The world reacts

Police stormed Milosevic’s villa shortly after he had appeared from his Belgrade home to the cheers of his supporters.

Police vans rammed the gates of his villa and officers armed with military assault rifles were deployed inside the grounds.

Bodyguards and police exchanged fire as special forces smashed through a window and tried to enter the house.

Outside hundreds of riot police prevented Milosevic’s supporters from surrounding the house. About 1,000 people -- both Milosevic supporters and opponents -- were outside the grounds.

At least two people were reported injured, said journalist Bratislav Grubacic. A photographer was seen with a bloodied hand.

CNN correspondent Walter Rodgers said that by dawn a standoff had developed between Milosevic and police.

Richard Holbrooke, who tried to broker an agreement between the U.N. and Yugoslavia before the Kosovo conflict, said: "Milosevic is now fully discredited or will be shortly whether he is in the Hague or in a Belgrade cell. Politically he is over."

The government of President Vojislav Kostunica has not issued any statements on the operation.

But the operation came as a U.S. deadline for co-operation with the war crimes tribunal expired.

Washington has threatened to withhold $50 million in aid unless Kostunica works with the war crimes tribunal. A key aspect of that co-operation is handing over Milosevic who has been indicted on war crime charges over Kosovo.

Former U.S. Secretary of State Madeleine Albright told CNN, "What the Serb people really want to do is to be able to hold up their heads again and be a part of the new Europe. And (Milosevic's arrest) is a step that needs to be taken to accomplish that."

Earlier Serbia’s deputy prime minister has said Milosevic has been arrested on corruption charges although it is now apparent he is still at his villa.

Zarko Kovac said: “We just simply want justice to be served.”

Florence Hartman, with the War Crimes Tribunal, said: “We are expecting immediately a commitment of the Yugoslav state that they will transfer him. We are ready for a trial."

"It is a trial on crimes against humanity. It is a very important charge against him."

In Washington, President George W. Bush said, "We've always said Mr. Milosevic should be brought to justice."

Milosevic, 59, ruled Yugoslavia for 13 years and pushed the country's military and militias into a succession of brutal wars with neighbouring republics and finally against the NATO alliance until he was toppled last October in a popular uprising.

Photographer Andrija Ilic suffered a gunshot wound during the raid

The U.N. tribunal in May 1999 formally indicted then-Yugoslav President Milosevic for alleged war crimes, accusing him of authorising a military campaign against civilians in the Serb province of Kosovo.

The indictment marked the first time a sitting head of state had been charged with war crimes. Milosevic, along with four subordinates, were charged with murder, deportation and persecution in violation of the laws and customs of war.

British Foreign Secretary Robin Cook said: "I welcome any move which helps bring Milosevic to justice. It is vital that Milosevic answers these charges."

Milosevic led his country through bloody wars against the neighbouring republics of Bosnia, Croatia and, briefly against Slovenia, as well as the province of Kosovo, pitting Serbs against Albanians. This brought on his final conflict against the NATO alliance, ending in defeat.

Carl Bildt, U.N. special envoy to the Balkans, said the developments show Yugoslavia is "playing by the rules."

"They know that he was evil. They know that he was bad," Bildt said. "But they find it difficult to accept that the international community is not, in the same way, dealing with what they consider crimes against Serbs during these horrible wars over the last 10 years."

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March 26, 2001
Milosevic greets anti-NATO protesters
March 24, 2001
Kostunica criticises warcrimes process
March 25, 2001
Serbs hand over war crimes suspect
March 23, 2001
Milosevic net tightens, U.N. told
March 20, 2001

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