Belgrade is racing against the clock to secure the future of NIS, Serbia‘s primary oil company, as it navigates a complex geopolitical landscape. U.S. sanctions targeting Russian ownership of the firm prompted a near-total halt in operations at the country’s only refinery last month, threatening energy stability for a nation reliant on its output. Now, a temporary license granted by the U.S. Treasury has offered a brief window for negotiations between Russian adn Hungarian stakeholders, with President Vučić expressing hope for a swift resolution.
Serbian President Hopes for Swift Deal on Oil Company NIS Amid Sanctions
Belgrade – Serbian President Aleksandar Vučić expressed hope Thursday for a quick resolution between Russia and Hungary regarding the future of NIS, a Serbian oil company facing sanctions from the United States. The sanctions stem from Washington’s demands for the complete divestment of Russian capital from the strategically important firm, which plays a crucial role in Serbia’s economy.
According to Serbian officials, negotiations are underway between Gazprom and Hungarian oil and gas company MOL concerning the sale of a 56% stake in NIS. The shares are currently held through two subsidiaries of the Russian energy giant – Gazprom Neft and Intelligence.
The United States granted NIS a temporary reprieve on Wednesday, allowing it to resume operations while a sale agreement is finalized. This came after nine months of repeated extensions, culminating in sanctions imposed on NIS on October 9 as part of broader measures targeting Russia’s energy sector in response to the ongoing war in Ukraine.
The sanctions effectively halted NIS’s crude oil imports, leading to the shutdown of its Pancevo refinery – the country’s only such facility – in early December. The refinery supplies approximately 80% of Serbia’s domestic market.
Vučić welcomed the temporary license granted by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which allows NIS to resume operations until January 23, including refining activities. The development underscores the delicate balancing act Serbia faces as it navigates relations with both Russia and the West.
Crude oil imports are expected to resume as early as January 5, with the refinery anticipated to be operating at full capacity by January 17, just days before the U.S.-imposed deadline expires. “I hope that the Russians and the Hungarians will finish their work by then,” Vučić told reporters, referring to reaching an agreement on the sale of the Russian shares.
