U.S. Grants 30-Day Sanctions Relief to Serbian Oil Company NIS

by Amelia

The United States has granted a 30-day suspension of sanctions on the Serbian oil company NIS, which is majority-owned by Russian firms and operates the country’s sole oil refinery, Serbian President Aleksandar Vucic confirmed on Thursday. The announcement, made via a post on Vucic’s Instagram account, was based on a U.S. Treasury document he shared.

“We got 30 additional days for NIS. This is good news for the citizens of Serbia,” Vucic wrote, indicating that the extension will benefit the nation’s energy sector.

In January, the U.S. imposed sanctions on Russia’s oil industry, with a specific deadline for Russian oil company Gazprom Neft to divest from NIS. On Wednesday, Gazprom Neft reduced its controlling stake in NIS by transferring around 5% to its parent company, Gazprom. This move appears to be part of an effort to comply with U.S. demands, but it remains uncertain whether the swap will be accepted long-term.

For Serbia, the reprieve offers significant relief, as NIS controls about 80% of the domestic market for crude oil and petroleum products. Without it, Serbia would struggle to import crude oil via Croatia’s pipeline operator Janaf.

The U.S. has yet to publicly comment on the situation since the expiration of the original deadline. It is unclear whether the latest ownership changes will be sufficient to avoid future sanctions.

The Serbian government holds a 29.87% stake in NIS, with the remainder owned by smaller shareholders.

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