US once again delays sanctions on Serbia’s largest energy firm

The United States has postponed sanctions against Serbia’s largest energy company, NIS, until October 8–9, following discussions with Serbian President Aleksandar Vucic.

The delay comes after an earlier decision indicated that sanctions were set to take effect on Wednesday, October 1. President Vucic had warned that the measures would create “serious difficulties” for Serbia’s economy and energy sector, noting that the country risked becoming collateral damage in the US-Russia standoff, Caliber.Az reports via Serbian media. 

NIS, a major vertically integrated energy company in Southeastern Europe, is majority-owned by Russia's Gazprom Neft (44.85%), Gazprom (11.3%), and the Serbian government (29.87%). On January 10, the US Treasury Department added Gazprom Neft, its CEO Alexander Dyukov, and more than 20 subsidiaries, including NIS, to its sanctions list.

Since then, NIS has benefited from six consecutive 90-day sanctions waivers, but President Vucic had expressed concerns in mid-September that the US might not grant another extension beyond September 26.

By Sabina Mammadli