Serbia is at risk of losing access to crucial oil imports starting Friday due to the potential imposition of U.S. sanctions on its sole oil refinery, NIS. Discussions to prevent these sanctions have so far been unsuccessful, according to President Aleksandar Vucic.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) initially sanctioned Russia's oil sector on January 10, granting Gazprom Neft 45 days to divest from NIS. A 30-day waiver was then issued on February 27 to allow NIS to find a solution with the Russian companies, but it is set to expire.
NIS operates Serbia's only oil refinery, with an annual capacity of 4.8 million tons, fulfilling most of the country's energy requirements. Gazprom Neft owns 44.85% of NIS, while Gazprom holds 11.3%. The Serbian government possesses 29.87% of the stakes, with the remaining shares held by small shareholders. NIS imports approximately 80% of its needs via Croatia's Janaf pipeline, with the rest covered by domestic crude oil production.