President Vučić: US grants 30-day extension on sanctions for Serbia's NIS oil company

The US has postponed the imposition of sanctions on Serbian energy company NIS for an additional 30 days, according to Serbian President Aleksandar Vučić.

Vučić shared the news with the Serbian public, describing it as "good news for the citizens of Serbia," Caliber.Az reports per foreign media.

He included a document from the US Department of the Treasury, which confirms the 30-day extension.

This delay provides a temporary reprieve for NIS, a key player in Serbia's energy sector, amid ongoing tensions between the US and Serbia.

Thus, on February 26 evening, it was reported that Gazprom Neft has transferred 5.15% of its shares in the Serbian company NIS to Gazprom. Prior to the transaction, Gazprom Neft owned 50% of NIS, while Gazprom held 6.15%. Following the transfer, Gazprom Neft now holds 44.85% of NIS, while Gazprom’s stake has increased to 11.3%. The Serbian government retains 29.87% of NIS shares, with the remaining shares owned by minority shareholders.

Dušan Bajatović, head of Serbia’s Srbijagas, has suggested that a special licence could resolve the sanctions issue surrounding NIS. He referred to the example of Gazprombank, which was permitted to engage in certain activities despite European sanctions, mainly related to payments for Russian gas supplies.

Serbia has stockpiled petroleum products sufficient for 90 days, while NIS holds reserves for another 90 days, ensuring that the country's fuel market would be covered for 180 days in the event of sanctions against NIS. Hungary has also expressed willingness to support Serbia if sanctions are imposed on NIS.

On January 10, the United States imposed sanctions on two Russian oil companies, Gazprom Neft and Surgutneftegaz, and their subsidiaries. NIS, a Serbian subsidiary of Gazprom Neft, was added to the SDN List. Serbian President Aleksandar Vučić has stated that the US demands the full withdrawal of Russian capital from NIS within 45 days, highlighting the importance of the company to Serbia’s budget and economic development since its privatisation in 2008.

NIS is Serbia’s sole hydrocarbon exploration and production company, with a major refinery in Pančevo. It dominates the Serbian fuel market and operates over 400 petrol stations across Serbia, Bosnia and Herzegovina, Bulgaria, and Romania.

By Aghakazim Guliyev