Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, revealed that the United States has refused to extend the operating license for the Petroleum Industry of Serbia (NIS), due to its partial Russian ownership.
Speaking at an extraordinary press briefing, Đedović Handanović said that while approval had been given only to negotiate possible ownership changes, the U.S. never authorized NIS or its refinery operations to continue.
“The American administration has been crystal clear: they demand full ownership change and complete withdrawal of Russian ownership from NIS,” the minister said.
She acknowledged the impossibility of restructuring ownership within just seven days, and hinted at drastic steps ahead:
“We face hard decisions. Either we seize control of the company and compensate damages, or risk leaving our country and citizens exposed.”
The statement directly contradicts previous remarks by President Aleksandar Vučić, who said he opposes the nationalization of NIS, despite the company being the largest oil industry entity in Serbia. However, after months of warnings, the government is now cornered by U.S. sanctions.
The move is part of U.S. efforts to disrupt Moscow’s funding following its 2022 invasion of Ukraine. Sanctions were officially imposed on October 9, after being postponed eight times.
Russian owners of NIS reportedly submitted a request to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) on November 11, seeking an extension based on negotiations involving a “third party,” but to no avail.
Serbia is now at a critical energy juncture, with supply chains disrupted and the country’s largest refinery in Pancevo at risk. This follows months of careless delay and inaction from the Serbian government, which failed to prepare contingency plans despite repeated warnings.
Meanwhile, citizens brace for fuel shortages and price surges, as the government scrambles to save face under pressure. The crisis underscores a failed energy strategy under Vučić, who repeatedly assured the public that “everything was under control,” while in reality, Serbia’s dependence on Russian-controlled infrastructure left it dangerously exposed.
