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“The helicopter burned out completely”, the chief of Skopje's fire brigade, Blagoja Menkovski told local news agency, NetPress.
Macedonian President Branko Crvenkovski and Premier Nikola Gruevski arrived at the location of the accident shortly afterwards.
“Seven bodies have been identified so far”, Gruevski told media.
Rescue officials said there were no survivors.
The helicopter, which came down near the Katlanovsko Blato area, south of Skopje, was carrying military personnel deployed with the European peacekeeping force, EUFOR, in Bosnia and Herzegovina.
Witnesses told local media they had heard two explosions before the helicopter crashed.
The police and the defense ministry have not yet said what caused the accident, but sources in the government told local media it may have been poor visibility as the area was enveloped in thick fog at the time.
The multi-purpose MI-17 helicopter was of Russian origin.
Macedonia has deployed two of its recently-modernized helicopters with the peacekeepers in Bosnia.
The European Union’s foreign policy chief, Javier Solana, expressed his condolences to Macedonia’s leaders and people.
“The accident is especially sad as the former Yugoslav Republic of Macedonia is making an outstanding contribution to the EU military operation in Bosnia and Herzegovina, supporting security and stability in the region at a crucial time,” Solana’s message said.
At an emergency session held shortly after the accident, the government decided to declare a day of national mourning on the the day the victims's funeral is held.
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