Serbia Secures Sanctions Waiver for Oil Company NIS

Belgrade: Naftna Industrija Srbije (NIS), a Serbian oil firm primarily owned by Russia’s Gazprom Neft and Gazprom, has been granted a third waiver from U.S. sanctions, according to President Aleksandar Vucic.

NIS manages Serbia’s sole oil refinery, possessing an annual processing capacity of 4.8 million tons. This refinery is crucial for meeting the majority of the Balkan nation’s energy demands, and sanctions could disrupt its essential crude oil supply.

“Serbia has successfully obtained another sanctions exemption, valid for two months, extending until June 27,” Vucic announced via Instagram.

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

To date, the Serbian government and NIS have secured two previous one-month waivers from OFAC, seeking a resolution with the Russian entities. The second waiver was scheduled to lapse on April 28.

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

“We appreciate the understanding shown by our American partners regarding Serbia’s situation,” Vucic stated.

On February 26, Gazprom Neft transferred approximately 5.15% of its shares in NIS to Gazprom in an effort to mitigate the impact of sanctions. Currently, Gazprom Neft holds 44.85% of NIS, while Gazprom possesses 11.3%. The Serbian government retains a 29.87% stake, with the remaining shares distributed among smaller investors.

NIS imports around 80% of its required oil volume via Croatia’s Janaf pipeline system. The remaining demand is satisfied through NIS’s domestic crude oil production within Serbia.