Serbia signals uncertainty over NIS operations amid US sanctions

Serbian President Aleksandar Vučić announced today that the United States has yet to decide on extending the license for the operations of the Serbian Petroleum Company (NIS), which has been under US sanctions since October 9 due to its majority Russian ownership.

Without a license extension, the Pančevo oil refinery, operated by NIS and supplying most of Serbia’s domestic market, faces a potential complete shutdown due to a lack of crude oil for processing, Caliber.Az reports, citing foreign media.

NIS is still awaiting a response from US authorities regarding its request to continue operations while negotiations continue over the purchase of the Russian stake in the company.

“Russia does not want to sell its stake in NIS. It’s not about money, it’s about politics,” Vučić said during a press conference following a meeting with teams responsible for the country’s energy stability and security.

Vučić added that Energy Minister Dubravka Đedović Handanović would update NIS on the situation, and authorization has already been given for the Pančevo refinery to halt operations.

“NIS will decide whether the refinery stops today or in the coming days,” the president stated.

On November 25, the Serbian government adopted a decision giving Russia 50 days to find a buyer for its stake in NIS. After this period, the state will impose its own management at the company and offer the Russian side “the highest possible price” for the stake.

So far, neither the US nor Russia has publicly disclosed information on the state of negotiations. Updates to citizens have largely come from Serbian officials, particularly President Vučić.

By Vafa Guliyeva