The Russian Federation has initiated discussions to transfer control of its stake in Serbian oil company Naftna Industrija Srbije (NIS), as sanctions imposed by the United States Department of the Treasury threaten the continuity of the company’s operations. These sanctions, in effect since 9 October, directly target the Russian energy subsidiary Gazprom Neft, the majority shareholder in NIS, as part of a broader framework targeting the Russian energy sector.
An American licence pending to avoid disruption
The Serbian government has confirmed that NIS’s Russian shareholders have submitted a formal request to the Office of Foreign Assets Control (OFAC) of the US Treasury Department for an extension of a licence that would allow the company to maintain its operations. The request is based on ongoing negotiations with a third party, identified as a potential buyer of the Russian-held shares. No information has been disclosed regarding the identity of this third party.
Serbian Minister of Energy Dubravka Djedovic Handanovic stated that the Russian shareholders have expressed their willingness to transfer control and influence over NIS, confirming a political intention to limit the effects of sanctions on the Serbian economy. She specified that Serbia officially supports this initiative and hopes for a swift response from US authorities.
A key infrastructure for regional energy supply
NIS operates the country’s only refinery, located in Pancevo, which supplies around 80% of the domestic market. It also manages over 400 fuel stations across the Balkans, including in Serbia, Bosnia and Herzegovina, Bulgaria, and Romania, and employs around 13,500 people. In 2024, the company posted €3.3bn ($3.52bn) in revenue but ended the year with a net loss of €153mn ($163mn).
Since NIS’s privatisation in 2009, Gazprom Neft has held approximately 45% of the capital. The Russian company recently transferred 11.30% of its shares to Intelligence, a company based in Saint Petersburg. The Serbian state retains a stake of around 30%, with the remainder held by minority shareholders.
An urgent economic and diplomatic issue
The potential impact of the sanctions on NIS directly threatens the stability of Serbia’s oil sector. The Serbian government considers the company’s future strategic to the national economy, which explains its active role in discussions between the Russian shareholders and OFAC. The outcome of these negotiations will influence not only regional energy supply management but also diplomatic relations between Belgrade, Moscow and Washington.
“There is less and less time and a solution must be found,” the minister insisted, stressing the urgency of preserving NIS’s operational integrity in the face of increasing restrictions.
