US measures against Russian-owned NIS cut off Serbia’s main oil source

US sanctions targeting Russia’s ownership of Serbia’s NIS oil group have blocked the delivery of a crude shipment that could have temporarily eased pressure on the country’s only oil refinery, which now risks shutting down within days due to a lack of supply, several sources familiar with the situation told Reuters.

The sources, who requested anonymity because of the sensitivity of the issue, said that the NIS refinery in Pančevo, Serbia’s sole oil-processing facility, has only a few days left before it will have to halt operations unless new crude deliveries arrive.

Serbian President Aleksandar Vučić warned on October 9 that without new shipments, the refinery — which produces most of Serbia’s oil products, including gasoline and jet fuel — could not continue functioning beyond November 1.

However, Vučić sought to reassure the public, saying that Serbia’s fuel storage facilities are currently full and that existing oil product reserves should sustain the country until the end of the year. “There will be no shortages of crude oil or its derivatives, and no energy crisis,” he told citizens last week.

US sanctions disrupt crude shipment

According to data from analytics firm Kpler, the tanker Maran Helios carrying one million barrels of Kazakh KEBCO crude destined for NIS arrived at the Croatian port of Omišalj on October 9. However, the oil never reached Serbia, a source close to the matter confirmed.

Croatian pipeline operator Janaf, which had been granted an extension to continue transporting oil to Serbia until October 15, announced this week that it had completed all deliveries of NIS-owned oil on October 8. The company added that it had no additional shipments scheduled for Serbia after that date — indicating it did not receive the Kazakh cargo intended for NIS.

It remains unclear whether the crude shipment, which finally unloaded on October 22 after lingering off Omišalj for about two weeks, will be stored there or sold to another buyer, according to Kpler data reviewed by Reuters.

The volume of crude that NIS was expecting would have been sufficient to keep the Pančevo refinery operating for roughly ten days, Reuters estimated.

Although two sources told Reuters that Serbia’s fuel reserves are nearly full, they warned that the country will increasingly depend on imports once these supplies begin to decline.

“For me, it’s not even a question. The refinery must keep running, and petrol stations must remain operational,” said Nadežda Kokotović, the former head of NIS’s EU liaison office.

By Tamilla Hasanova