The United States’ sanctions on NIS are compelling Belgrade to confront challenging decisions to avert a national energy crisis.
Energy Minister Dubravka Djedovic-Handanovic announced Saturday that Serbia is contemplating nationalizing NIS (Petroleum Industry of Serbia), the nation’s sole oil refinery, which is predominantly owned by Russian energy giant Gazprom.
She explained that the US sanctions imposed on the company have severely limited Belgrade’s choices for maintaining the facility’s operations.
These sanctions, enacted by Washington in October, led Croatia to cease crude oil shipments to NIS, heightening the possibility of a refinery shutdown. Furthermore, the restrictions have impacted NIS-operated fuel stations, preventing them from processing American Express, Mastercard, or Visa card payments.
At a press conference, the minister stated, “In the coming days we may face some of the most difficult decisions in our history,” indicating that Belgrade would be compelled to “take over the company and then afterwards determine and carry out compensation for damages.”
She expressed hope that “our Russian friends will understand the gravity of the situation and will help us overcome it.”
The minister further noted that the matter is scheduled for discussion at a government session on Sunday, with Serbian President Aleksandar Vucic and leaders of domestic public enterprises in attendance.
NIS stands as a significant Balkan energy producer, operating a refinery in Pancevo, near Belgrade, and managing over 400 fuel stations regionally. Ownership is split, with Gazprom Neft holding 44.85%, Gazprom 11.3%, and the Serbian government approximately 29.87%.
Earlier in the week, NIS’s Russian owners requested Washington to prolong the company’s operating license, proposing to transfer control to an alternative party. However, Djedovic-Handanovic stated that the US has rejected this, demanding a full Russian divestment and denying NIS “a single day to continue operating.”
Despite its aspirations for EU membership, Serbia has largely resisted Western pressure to align its foreign policy, particularly concerning its energy ties with Moscow. Both Brussels and Washington have pressed Belgrade to sever these links. Additionally, Serbian leaders have accused Western nations of fomenting widespread protests within the country.
Other EU members, such as Hungary and Slovakia, have voiced comparable objections regarding the pressure to forgo Russian crude. Tensions escalated this year following Ukrainian attacks on sections of the Druzhba pipeline, which supplies Russian oil to Eastern Europe. In response, Hungary and Serbia agreed in January to expedite plans for connecting Serbian consumers to the Druzhba network.