Serbia Secures Sanctions Waiver for Oil Company

Aleksandar Vucic, the President of Serbia, announced on Saturday that Naftna Industrija Srbije (NIS), a Serbian oil company majority-owned by Russia’s Gazprom Neft and Gazprom, has obtained a third waiver from United States sanctions.

NIS manages Serbia’s sole oil refinery, boasting an annual processing capability of 4.8 million tons. This refinery is crucial for fulfilling the majority of the Balkan nation’s oil requirements. The imposition of sanctions would jeopardize its crude oil supply.

“Serbia has succeeded in acquiring another sanctions waiver, valid for a duration of two months, extending until June 27,” Vucic stated in a post on Instagram.

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) initially enforced sanctions on Russia’s petroleum sector on January 10, granting Gazprom Neft a 45-day period to divest its ownership stake in NIS.

The Serbian government, along with NIS, has previously secured two one-month waivers from OFAC to explore potential resolutions with the Russian entities. The second of these waivers was scheduled to lapse on April 28.

This latest development marks the first instance of a two-month sanctions reprieve.

“We extend our gratitude to our American counterparts for their understanding of Serbia’s position,” Vucic expressed.

On February 26, Gazprom Neft transferred approximately 5.15% of its shares in NIS to Gazprom in an attempt to avert sanctions. Currently, Gazprom Neft possesses 44.85% of NIS, while Gazprom holds an 11.3% stake. The Serbian government retains a 29.87% share, with the remaining portion held by minor shareholders.

NIS imports roughly 80% of its oil via Croatia’s pipeline operator Janaf. The remaining 20% is met through Serbia’s domestic crude oil production.