Looks like Serbian trench art carvings. Google "serbian crest" and you'll get a ton of pics of what that carving represents.
Good chance that gun is a conflict gun used during their Civil War. I have a couple Yugos with trench art on them as well.
Another common find among Yugoslavian Civil War guns are Beverly Hills 90210 stickers from the 90s TV show. They were included for whatever reason in care packages the US sent over there during the conflict. The soldiers got those stickers and would put them on their guns. I had some come with some of my parts kits, but the stickers were in rough shape, and fell off.
In addition to the Serbian Crest, I also have the name "Tito" carved on one of my handguards, representing Josip Broz Tito, leader of the former Yugoslavia.
Also, some of those guns have come with very distinct notches carved out of the wood. I'll let the imagination decide what those notches represented...