Serbia risks losing access to vital oil imports from Friday as discussions to prevent the imposition of U.S. sanctions on the country’s sole oil refinery have failed, President Aleksandar Vučić said in a published interview.
A waiver on sanctions is due to expire at midnight and, if not extended, the NIS refinery, majority-owned by Russia’s Gazprom Neft and Gazprom, could face crude supply cuts.
NIS operates Serbia's only oil refinery, which has an annual capacity of 4.8 million tons and covers most of the Balkan country's energy needs.
Vučić was quoted by Britain’s Financial Times newspaper on Thursday as saying he did not expect a last-minute deal.
“We’ve been talking to the Americans, to the Russians, to everybody” about finding a solution, Vučić told the FT in Belgrade. “We didn’t see any changes in the American attitude.”
He was expected to address the situation with the Serbian public later on Thursday.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) initially placed sanctions on Russia’s oil sector on January 10 and gave Gazprom Neft 45 days to exit ownership of NIS.
After the first request by NIS for a sanctions waiver, the OFAC delayed sanctions for 30 days on February 27 to allow NIS to find a solution with the Russian companies. On February 26, Gazprom Neft transferred stakes of around 5.15% in NIS to Gazprom to ward off sanctions.
The changes mean Gazprom Neft, now subject to more severe Western sanctions due to its heavier focus on oil income, no longer has an absolute majority in NIS. They echoed a move in 2022 that allowed Gazprom Neft at the time to avoid European Union sanctions imposed on Russia over its invasion of Ukraine.
Gazprom Neft now owns 44.85% of NIS, while Gazprom - whose income comes mainly from gas - has 11.3%. The Serbian government holds 29.87% of stakes, with small shareholders accounting for the remainder.
NIS imports about 80% of its needs through Croatia’s pipeline operator Janaf, with the remainder covered by its crude oil output in Serbia. In 2024, the two companies agreed to transport 10 million tons of crude oil by December 2026.
Earlier this month, Economy Minister Ante Šušnjar of Croatia, an EU member state, said Janaf was considering purchasing all of Russia’s stake in NIS.
NIS operates Serbia's only oil refinery, which has an annual capacity of 4.8 million tons and covers most of the Balkan country's energy needs.
Vučić was quoted by Britain’s Financial Times newspaper on Thursday as saying he did not expect a last-minute deal.
“We’ve been talking to the Americans, to the Russians, to everybody” about finding a solution, Vučić told the FT in Belgrade. “We didn’t see any changes in the American attitude.”
He was expected to address the situation with the Serbian public later on Thursday.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) initially placed sanctions on Russia’s oil sector on January 10 and gave Gazprom Neft 45 days to exit ownership of NIS.
Severe Western sanctions
After the first request by NIS for a sanctions waiver, the OFAC delayed sanctions for 30 days on February 27 to allow NIS to find a solution with the Russian companies. On February 26, Gazprom Neft transferred stakes of around 5.15% in NIS to Gazprom to ward off sanctions.
The changes mean Gazprom Neft, now subject to more severe Western sanctions due to its heavier focus on oil income, no longer has an absolute majority in NIS. They echoed a move in 2022 that allowed Gazprom Neft at the time to avoid European Union sanctions imposed on Russia over its invasion of Ukraine.
Gazprom Neft now owns 44.85% of NIS, while Gazprom - whose income comes mainly from gas - has 11.3%. The Serbian government holds 29.87% of stakes, with small shareholders accounting for the remainder.
NIS imports about 80% of its needs through Croatia’s pipeline operator Janaf, with the remainder covered by its crude oil output in Serbia. In 2024, the two companies agreed to transport 10 million tons of crude oil by December 2026.
Earlier this month, Economy Minister Ante Šušnjar of Croatia, an EU member state, said Janaf was considering purchasing all of Russia’s stake in NIS.
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