Two Republican members of the U.S. House of Representatives have urged the administration of President Donald Trump not to extend temporary sanctions relief for Serbia’s state-owned oil company, Naftna Industrija Srbije (NIS), amid concerns over its Russian ownership and Belgrade’s continued ties with Moscow.
According to The Hill, Representatives Joe Wilson and Keith Self sent a letter to U.S. Treasury Secretary Scott Bessent on Friday opposing further extensions of temporary licenses that allow NIS to continue operating despite U.S. sanctions linked to its Russian ownership.
“We respectfully ask that you reconsider extending any additional temporary licenses that would allow Naftna Industrija Srbije to continue operations despite U.S. sanctions related to its Russian ownership,” the lawmakers said in the letter, according to the report.
NIS is majority-owned by Russia’s Gazprom Neft and Gazprom, with the Russian side holding a 56.15 percent stake. The company operates Serbia’s only oil refinery, in Pančevo.
The current U.S. authorization for NIS is due to expire on September 30, while the company has requested another license from the Treasury Department that would allow it to continue operating.
MOL Takeover Talks Remain Unfinished
The dispute comes as Hungary’s MOL Group seeks to acquire Gazprom Neft’s majority stake in NIS.
MOL and Gazprom Neft signed a binding Heads of Agreement in January for the purchase of the 56.15 percent stake. The transaction requires regulatory approvals, including authorization from the U.S. Office of Foreign Assets Control (OFAC).
MOL has subsequently received several temporary U.S. approvals to continue negotiations. The company said the latest arrangements have allowed it to continue work toward finalizing the transaction, while emphasizing that the sale has not yet been completed.
MOL has also reached a shareholders’ agreement with the Serbian government concerning the future governance of NIS if the acquisition is completed. However, the company said the purchase agreement with Gazprom Neft and U.S. approval remain necessary before the transaction can be finalized.
Wilson and Self argued that repeated exemptions could allow the process of transferring the Russian stake to be delayed.
“The negotiations for the definitive purchase agreement are still ongoing, while MOL has requested further authorization from your department to continue operating despite limited progress,” the lawmakers said.
Concerns Over Serbia’s Relations With Russia
The Republican lawmakers also pointed to Serbia’s continued political and economic relations with Russia.
They noted that, unlike most European countries, Serbia has not imposed sanctions on Moscow following Russia’s full-scale invasion of Ukraine in February 2022.
The lawmakers’ intervention comes amid broader debate in Washington over Serbia’s foreign-policy orientation and its relations with Russia and China.
For Serbia, NIS is a strategically important energy company, making the outcome of the sanctions and ownership dispute significant for the country’s fuel supply and energy security.
The proposed MOL acquisition is intended to transfer majority control of NIS away from Russian ownership, but the transaction remains subject to regulatory approvals and the completion of negotiations.
