The United States has temporarily lifted sanctions on Serbia’s largest oil company, NIS, for 30 days, according to Serbian President Aleksandar Vucic. The company, which supplies nearly 80% of the country’s oil and gas, was facing restrictions due to its ties with Russian firms.
The decision to suspend sanctions was revealed by Vucic, who shared an official document from the U.S. Treasury Department on his Instagram page. He described this as good news for Serbian citizens, as the country relies heavily on NIS for its fuel needs. However, the U.S. has not publicly commented on the decision yet.
Russian Ties Put NIS at Risk
The Serbian oil company is majority-owned by Russian firms. One of its key owners, Gazprom Neft, was required to exit its stake by the morning of February 22 due to U.S. sanctions placed on Russia’s oil sector. On the day before the deadline, Gazprom Neft reduced its stake by transferring around 5% of its shares to its parent company, Gazprom.
Gazprom Restructures NIS Holdings Amid Looming US Deadline
Despite this move, it is unclear whether the United States will accept the transfer as a legitimate solution. Gazprom Neft remains under sanctions, and its continued indirect connection to NIS might be a problem in the future.
Serbia Avoids Immediate Fuel Shortages
If the sanctions had been fully imposed, NIS would have faced difficulties in importing crude oil. Serbia’s primary oil supply route runs through Croatia, and Croatia’s pipeline operator, Janaf, would not have been able to continue transporting oil to NIS under U.S. sanctions. This could have led to fuel shortages and economic disruptions in Serbia.
For now, the 30-day relief provides a temporary solution. It allows Serbia’s energy market to function without immediate disruptions. However, with no clear long-term decision from the United States, the future of Serbia’s oil company remains uncertain.
The Serbian government owns almost 30% of NIS, with small shareholders holding the rest. With the company’s majority ownership still connected to Russian firms, it remains to be seen how long Serbia can maintain its current energy supply without facing additional restrictions.
