Serbia's Oil Sector Faces Crisis
(MENAFN) The United States has officially enforced sanctions on the Petroleum Industry of Serbia (NIS), a company predominantly owned by Russian entities, triggering serious disruptions in Serbia’s energy sector.
As a direct result, neighboring Croatia has ceased its crude oil deliveries to Serbia, placing the nation’s only oil refinery at imminent risk of shutting down.
Initially, Washington had provided temporary relief to Belgrade from the sanctions imposed back in January on NIS, in which Gazprom and Gazprom Neft—both Russian-controlled—hold the controlling interest. The final exemption, granted on October 1, lasted just one week before it expired.
NIS announced on Thursday that the US Treasury Department had declined to prolong the waiver, thereby enforcing full sanctions on the firm.
The company stated it was “working to overcome the situation” and plans to liaise with American authorities to seek its removal from the sanctions list.
The latest sanctions have prompted Croatia to halt crude oil supplies to Serbia, a move that threatens the operational capacity of the country’s sole refinery.
Serbian President Aleksandar Vucic voiced concerns on Thursday, indicating that the facility—essential for the provision of gasoline and jet fuel—could shut down by November 1 if crude shipments don’t resume soon.
“These are extremely severe consequences for our entire country. It's not just about the functioning of one company,” Vucic declared during a televised address, highlighting the broader national impact.
Under the new restrictions, NIS is effectively prohibited from acquiring crude oil or exporting its refined petroleum products, intensifying the pressure on Serbia’s already strained energy infrastructure.
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