UEFA ruled Wednesday that Kosovo had forfeited their Nations League game in Romania by leaving the pitch in stoppage time and not returning, after hearing pro-Serbia chants.
The Kosovo players walked off in Bucharest last Friday after fans in the crowd shouted "Serbia", leading to the game to be abandoned just before the end with the score 0-0.
In its ruling, UEFA deemed the Kosovo football federation "responsible for the match not being played in full" and said the team would forfeit it 3-0.
The decision means Romania will be promoted to League B of the competition as winners of their group, while Kosovo go into a promotion play-off after finishing runners-up.
The Kosovar FA also incurred a 6,000-euro fine for "the improper conduct of its team" after five players received yellow cards in the game, the same number as Romania.
UEFA fined the Romanian football federation 128,000 euros for a series of disciplinary breaches.
It also ordered the team's next home game to be played behind closed doors for "racist" chants by Romanian supporters targeting neighbouring Hungary.
In addition, Romania were sanctioned for "provocative political messages not fit for a sports event" and disturbances during the Kosovar national anthem.
UEFA also punished the Romanian FA for the throwing of objects, lighting of fireworks, use of laser pointer and the blocking of public passageways.
Animosity between Kosovo and Serbia has persisted since the war between Serbian forces and ethnic Albanian insurgents in the late 1990s.
Kosovo and Serbia do not play each other in UEFA and FIFA tournaments.
Football's world governing body opened disciplinary proceedings against Serbia during the 2022 World Cup after the team hung a flag in their changing room depicting Kosovo as part of Serbia.
Kosovo joined FIFA and European confederation UEFA in 2016.