The U.S. Office of Foreign Assets Control (OFAC), part of the Department of the Treasury, has extended the operating license for Serbia’s Oil Industry (NIS) until February 20, confirmed on January 23 by the President of the Serbian Parliament, Ana Brnabić.
“This means that NIS and the refinery will continue to operate. This buys additional time for our citizens, the country, and the economy,” Brnabić said during a press conference in the Serbian Parliament.
As reported by Radio Television of Serbia (RTS), OFAC emphasized in a letter that the extension is conditional on transactions not involving U.S. entities or the U.S. financial system, and not benefiting, directly or indirectly, any other sanctioned entity except NIS.
Another condition is that transactions must not involve any other activity subject to U.S. sanctions under regulations targeting harmful foreign policy activities of Russia, REL reports.
NIS is currently under U.S. sanctions because most of its ownership is held by Russian companies, and the U.S. administration requires Russia to exit ownership for sanctions to be lifted.
The Hungarian group MOL confirmed on January 19 that it had signed a framework agreement with the Russian company Gazprom Neft for the purchase of 56.15% of NIS shares.
The Serbian Minister of Mining and Energy, Dubravka Gjedović Handanović, stated on January 20 that NIS had submitted a request to the U.S. administration for the license extension while negotiations on the matter are ongoing.
Approval from OFAC is required to complete this transaction.
The previous operating license, granted to NIS three weeks ago, expires at midnight.
