The Serbian Ministry of Energy announced that a fifth 30-day extension has been granted by the United States Department of the Treasury to Naftna Industrija Srbije (NIS), a key operator in the Serbian oil sector. This decision concerns the application of US sanctions targeting Russian energy companies, introduced in January at the end of former US President Joe Biden’s term.
A fifth extension in a tense context
NIS, controlled by Gazprom Neft with approximately 45% of shares, operates the country’s only oil refinery and plays a strategic role in Serbia’s energy supply. The Ministry of Mining and Energy confirmed that a longer extension could not be secured, indicating that the decision depended on complex diplomatic challenges among global powers.
The US sanctions, originally scheduled to take effect on July 30, could lead to a full withdrawal of Russian interests from NIS. Minister of Mining and Energy Dubravka Djedovic Handanovic stated that the country remains in an uncertain situation despite the new reprieve, highlighting the risks to the sector from the potential loss of a key player.
Potential consequences for the Serbian energy sector
If the sanctions are applied, several scenarios are being considered for the shares held by Russian companies, including a rapid sale of stakes or nationalisation by the Serbian state. As of today, the Serbian government holds nearly 30% of NIS’s capital, with the remaining shares split between Gazprom, Gazprom Neft, and minority shareholders.
Serbia remains highly dependent on imports of Russian gas, delivered primarily through NIS. The natural gas supply contract signed between Belgrade and Moscow in spring 2022 was initially set to expire at the end of May, but was extended until the end of September, providing temporary relief in a volatile market environment.
Pressure on national energy strategy
Serbian authorities are closely monitoring international developments concerning NIS and seeking to limit the consequences of a possible break with Russian partners. The situation remains unstable and exposes the country to rapid adjustments in energy strategy and national resource management.
Minister Dubravka Djedovic Handanovic pointed out that the current balance allows Serbia to avoid direct consequences, but ongoing volatility in the international context is raising many questions within the sector.
