Serbia to set up working group to address potential US sanctions on oil company

Serbian President Aleksandar Vučić has instructed the government to establish a working group to negotiate with both Russia and the United States regarding Washington's plans to impose sanctions on the Serbian state-owned oil company, Naftna Industrija Srbije (NIS), due to its ties with Russia.

Vučić emphasized the need for a comprehensive team, comprising not only cabinet members and experts but also broader participation, to manage the negotiations, Caliber.Az reports citing Russian media.

"We cannot afford to lose oil or squander our oil reserves,"  he stated, underscoring the significance of the issue for the country.

The President added that the group will focus on managing the delicate balance between maintaining good relations with Russia while addressing the sanctions threat from the US. He expects Prime Minister Miloš Vučević to lead the team.

Earlier, Vučić confirmed that the expected sanctions, set to take effect on January 1, 2025, would not alter Serbia's stance of refusing to join anti-Russian sanctions. He reiterated that the government will take appropriate measures to address the situation and preserve friendly ties with Russia, while avoiding damage to relations with countries imposing the sanctions.

The Serbian oil industry has reported that, at present, no sanctions have been imposed on NIS. However, the company is closely monitoring the situation and assessing all potential scenarios and the consequences of the expected US sanctions.

By Vafa Guliyeva