US grants Serbia's NIS oil company another 30-day sanctions waiver, President Vučić confirms

The United States Treasury has granted a second 30-day extension to the Serbian oil company NIS's sanctions waiver, Serbian President Aleksandar Vučić said on March 28.

The introduction of sanctions could have resulted in crude supply cuts for NIS, which operates Serbia's only oil refinery, with an annual capacity of 4.8 million tons, and covers most of the Balkan country's fuel needs, Caliber.Az reports, citing Western media outlets.

On January 10, the United States imposed sanctions against two Russian oil companies - Gazprom Neft and Surgutneftegaz, as well as their subsidiaries. Gazprom Neft's Serbian subsidiary NIS was also included in the SDN List. Later, the U.S. postponed for 30 days the imposition of sanctions on NIS - they were to come into force on March 28.

Sanctions on Serbia's sole oil refinery, NIS, comes due to its majority ownership by Russian companies Gazprom Neft and Gazprom. These sanctions aim to reduce Russia's energy revenues following its invasion of Ukraine. Initially, the sanctions required Gazprom Neft to divest its stake in NIS within 45 days, with a deadline of February 27, 2025. In response, Gazprom Neft transferred approximately 5% of its shares to Gazprom, reducing its majority stake. ​

To avoid disrupting Serbia's oil supply, the U.S. Treasury granted a 30-day extension to the sanctions waiver, pushing the new deadline to March 27, 2025. Serbian President Aleksandar Vučić expressed relief over this extension, acknowledging successful negotiations with U.S. partners. However, as the deadline approached, Serbia faced the risk of losing access to vital oil imports. President Vučić announced that talks with U.S. and Russian officials had not led to a resolution, and without an agreement, the Croatian pipeline operator Janaf, crucial for Serbia's oil imports, might have to suspend operations with NIS to comply with U.S. restrictions.

By Khagan Isayev