Gazprom-Owned NIS Set For Sanctions, Serbian President Announces
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Naftna Industrija Srbije (NIS), Serbia’s only oil refinery and gas producer, is about to face strict sanctions from the United States and the United Kingdom, according to Serbian President Aleksandar Vucic. He said these sanctions might start as soon as January 1, though he hasn’t received official confirmation yet.
The company is mostly owned by Gazprom Neft, the oil arm of Russia’s Gazprom. Gazprom Neft bought its largest share of NIS in 2008 and now owns over 56%.
Serbia May Take More Ownership Of NIS To Bypass Sanctions
In 2022, a small part of this share, 6.15%, was transferred to Gazprom itself because of Western restrictions against Russia after its invasion of Ukraine. Meanwhile, Serbia’s government owns just under 30% of NIS, which is one of the most traded companies on the Serbian stock exchange.
President Vucic described the situation as some of the hardest news Serbia has faced in recent years. To deal with the sanctions, he noted that the Serbian government might take over some ownership of NIS. This could help the company avoid the sanctions by changing its ownership structure.
Serbia is a candidate for membership in the European Union and has tried to maintain good relationships with Western countries, Russia, and China. While Serbia has criticized Russia’s war in Ukraine, it has not joined the international sanctions against Russia.
Serbia depends heavily on Russian gas, especially from Gazprom. Even though the country is trying to find other sources of energy, it still relies on Russia. Serbia is currently negotiating with Russia to extend its gas supply contract, which ends in March.
Serbia Plans To Connect To Hungary’s Druzhba Oil Pipeline By 2026
NIS’s main oil refinery in Pancevo, near Belgrade, has been getting crude oil through a pipeline in Croatia. Knowing that tightening sanctions might stop the pipeline from being used by NIS, Serbia has started planning to connect to crude oil supplies from the Druzhba pipeline via Hungary, starting in 2026.
President Vucic said that the Serbian government would first talk to the United States about the situation, and then to Russia. He stressed that Serbia needs to solve this issue quickly to avoid running out of oil during the winter. At the same time, the government wants to maintain its friendship with Russia while not upsetting countries that are imposing sanctions. The US Treasury Department, Gazprom, and Gazprom Neft have not yet commented on the matter.
