United States (U.S.) sanctions against the Serbian oil and gas company NIS, which is partially controlled by the Russian giant Gazprom, will come into force on October 1st, said the President of Serbia, Aleksandar Vucic, two days ago.
As the main player on the Serbian oil and gas market, NIS manages the only refinery in the country, in Pancevo, near Belgrade, which supplies about 80 percent of the Serbian market. Gazprom holds about 45% of the refinery.
NIS has been the target of U.S. sanctions against the Russian energy sector since January, but since then, it has had several consecutive postponements.
“The U.S. extended the suspension of sanctions for only four more days. So, starting from October 1st, we will have sanctions,” said Vucic to Serbian media during his visit to the U.S.
NIS employs approximately 13.500 people and manages more than 400 gas stations, mostly in Serbia and about 80 in Bosnia and Herzegovina (BiH), Bulgaria, and Romania, with a turnover of approximately 3.3 billion euros in 2024.
The implementation of sanctions risks dealing a blow to the Serbian economy, warned Goran Radosavljevic, general secretary of the National Oil Committee of Serbia and professor of economics.
“There could be difficulties in the supply of oil derivatives, given that NIS supplies more than 80% of the wholesale market,” said Radosavljevic.
According to him, oil derivatives directly influence transport prices, and transport affects the prices of all other goods and services.
The sanctions, introduced by U.S. President Joseph Biden, aim to reduce profits from the Russian oil and gas trade after the beginning of Russia’s invasion of Ukraine in February 2022.
NIS received a new special license from the U.S., valid until October 1st
The U.S. Department of the Treasury issued a new special license allowing the NIS to carry out operational activities no later than October 1st of this year, NIS announced yesterday.
The license was issued two days ago, and yesterday the deadline expired, until which the sanctions imposed on NIS by the U.S. Department of the Treasury in January of this year due to the share of Russian ownership had been postponed.
On March 14th, NIS submitted to the U.S. Department of the Treasury a request for the removal of the company from the sanctions list (SDN – Specially Designated Nationals), which, as the company stated, is a lengthy and complex process.
“In such conditions, the company strives to adapt business to the newly arisen circumstances and priorities remain preserving stability on the domestic oil derivatives market, as well as preserving the social stability of employees,” the statement emphasized.
The company secured sufficient crude oil reserves for processing, as well as sufficient quantities of oil derivatives for market supply at this moment. NIS gas stations are, as they claim in the company, regularly supplied with all types of oil derivatives and ready to meet consumer needs.
NIS stated that it respects the laws of Serbia and other states in whose markets it operates and that through its business it did not contribute to the introduction of sanctions which endanger the operation of the company and the social stability of more than 13.000 employees.
Also, NIS continues cooperation with the U.S. Department of the Treasury on the request for removal from the sanctions list and extension of the license, as well as cooperation with shareholders in resolving the newly arisen situation.
Janaf on sanctions against NIS: We will seek an extension of the license
After the statement of the President of Serbia, Aleksandar Vucic, that U.S. sanctions against the Petroleum Industry of Serbia will come into force on October 1st, the Croatian company Janaf spoke out, which, in that case, would be left without a large part of its income.
Janaf received the license necessary for the continuation of the execution of the Contract on crude oil transport concluded with the company NIS until October 1st, 2025, and in the coming days, through its U.S. lawyer and with the support of the Government of Croatia, it will address the U.S. Office of Foreign Assets Control (OFAC) for the extension of the license – it is stated in the announcement of the Adriatic Oil Pipeline.
The key to the extension of the license after October 1st, 2025, will be the activities of the company NIS towards U.S. authorities, stated Janaf.
