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On night between June 10/11 1903, a group of Serbian officers assassinated unpopular King Alexander I of Serbia. The Serbian parliament elected Peter Karađorđević as the new king of Serbia. The consequence of this dynastic change had Serbia relying on Russia and France rather than on Austria-Hungary, as had been the case during rule of Obrenović dynasty. Serbian desire to relieve itself of Austrian influence provoked the Pig War, an economic conflict, from which Serbia eventually came out as the victor.

Austria-Hungary, desirous of solidifying its position in Bosnia-Herzegovina, annexed the provinces on October 6, 1908.[51] The annexation set off a wave of protests and diplomatic maneuvers that became known as the Bosnian crisis, or annexation crisis. The crisis continued until April 1909, when the annexation received grudging international approval through amendment of the Treaty of Berlin. During the crisis, relations between Austria-Hungary, on the one hand, and Russia and Serbia, on the other, were permanently damaged.

After an exchange of letters outlining a possible deal, Russian Foreign Minister Alexander Izvolsky and Austro-Hungarian Foreign Minister Alois Aehrenthal met privately at Buchlau Castle in Moravia on September 16, 1908. At Buchlau the two agreed that Austria-Hungary could annex the Ottoman provinces of Bosnia and Herzegovina, which Austria-Hungary occupied and administered since 1878 under a mandate from the Treaty of Berlin. In return, Austria-Hungary would withdraw its troops from the Ottoman Sanjak of Novibazar and support Russia in its efforts to amend the Treaty of Berlin to allow Russian war ships to navigate the Straits of Constantinople during times of war. The two jointly agreed not to oppose Bulgarian independence.

While Izvolsky moved slowly from capital to capital vacationing and seeking international support for opening the Straits, Bulgaria and Austria-Hungary moved swiftly. On October 5, Bulgaria declared its independence from the Ottoman Empire. The next day, Austria-Hungary annexed Bosnia-Herzegovina. On October 7, Austria-Hungary announced its withdrawal from the Sanjak of Novi Pazar. Russia, unable to obtain Britain's assent to Russia's Straits proposal, joined Serbia in assuming an attitude of protest. Britain lodged a milder protest, taking the position that annexation was a matter concerning Europe, not a bilateral issue, and so a conference should be held. France fell in line behind Britain. Italy proposed that the conference be held in Italy. German opposition to the conference and complex diplomatic maneuvering scuttled the conference. On February 20, 1909, the Ottoman Empire, acquiesced to the annexation and received ₤2.2 million from Austria-Hungary.[52]

Austria-Hungary began releasing secret documents in which Russia, since 1878, had repeatedly stated that Austria-Hungary had a free hand in Bosnia-Herzegovina and the Sanjak of Novibazar. At the same time, Germany stated it would only continue its active involvement in negotiations if Russia accepted the annexation. Under these pressures, Russia agreed to the annexation,[53] and persuaded Serbia to do the same. The Treaty of Berlin then was amended by correspondence between capitals from April 7 to April 19, 1909, to reflect the annexation

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