Bosnia's Serb Republic is expected to bar the state police and judiciary from operating on its territory on Thursday, a day after a state court ordered the Russian-backed separatist Serb president to step down for defying an international peace envoy.

Bosnia's state court on Wednesday convicted Bosnian Serb separatist leader Milorad Dodik for defying orders of an international peace envoy and sentenced him to one year in prison, the court said in a statement.

But the Bosnian-Serb leader Milorad Dodik made light of the verdict at the Court of Bosnia and Herzegovina. The president of the country's majority-Serb Republika Srpska region told supporters at a rally in the regional capital Banja Luka there was "no reason to worry".