The United States Department of the Treasury has delayed sanctions on Naftna Industrija Srbije (NIS) for another 30 days. This news was first reported by Radio Television of Serbia.
This is the fifth extension of the full implementation of the Serbia oil sanctions. The sanctions were originally announced because of the Russian stake in NIS’s ownership structure.
Why Were the Serbia Oil Sanctions Imposed?
Sanctions were imposed on January 10, 2025, due to the “secondary risk” linked to NIS’s connection with Gazprom Neft, which is under Western sanctions because of Russia’s invasion of Ukraine.
NIS asked the U.S. Treasury for a special license to delay the sanctions. The company also filed a request on March 14 to be removed from the sanctions list entirely.
Changes in NIS Ownership
To reduce the risk, Gazprom Neft transferred about 5% of its stake to Gazprom, a Russian energy company not currently under Western sanctions. As a result, Gazprom Neft now owns 44.85% of NIS, down from a majority stake.
However, Russian companies still hold a controlling share in Serbia’s oil industry through NIS.
Importance of NIS for Serbia’s Energy Market
NIS is the only company in Serbia that explores, produces, refines oil and produces natural gas. This makes it vital for the country’s energy supply.
After the war in Ukraine began and the energy crisis hit Europe, Serbia imposed price caps on gasoline and Euro-diesel to stabilize its domestic market.
Currently, the price of Brent crude oil on the global market is around $97.50 per barrel.
What Happens Next?
The U.S. Treasury’s new deadline gives NIS another 30 days before full sanctions might apply. NIS will continue negotiations with U.S. authorities and hopes for a solution that avoids the full impact of the Serbia oil sanctions.
