Sanctions Against NIS in Serbia Have No Impact in Kosovo

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RKS NEWS 5 Min Read
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American sanctions against Serbia’s Oil Industry (NIS) will have no effect on the fuel market in Kosovo, according to the Kosovo Oil Association.

Fadil Berjani, the President of the Association, stated that Kosovo does not import fuel from Serbia, so there will be no change in the price of oil and gasoline in the country.

Kosovo Customs confirmed that there were no oil or gasoline imports from Serbia in 2024.

On the other hand, the Kosovo Chamber of Commerce mentioned that sanctions against NIS could potentially lead to an increase in the price of products in Serbia, which are later imported into Kosovo.

On January 10, the United States placed NIS on the sanctions list due to the company’s ties to the Russian energy firm Gazprom Neft.

The aim of the sanctions is to prevent Russia from using energy revenues to fund its war in Ukraine.

No Dependence on Serbia

Kosovo oil traders are ready and find it easy to support an embargo on fuel imports from Serbia, says Berjani.

According to him, Kosovo does not import oil from Serbia and has no ties with NIS.

“All the importers Kosovo has – about 60 of them – import from Porto Romano, from Durres in Albania,” Berjani told Radio Free Europe.

According to data obtained by RFE from Kosovo Customs for 2024, Kosovo imported over 808 million liters of oil, valued at over 501 million euros, and over 92 million liters of gasoline, valued at around 56 million euros.

In 2023, Kosovo imported over 740 million liters of oil, worth over 507 million euros, and over 86 million liters of gasoline, worth more than 55 million euros.

That year, imports of fuel from Serbia accounted for less than 1 percent of the total import volume, according to Customs, while in the previous year, there were none.

Minimal Potential Effects

Berjani stated that even if fuel prices rise in Serbia, this will not affect Kosovo.

“In any case, we are not dependent on Serbia at all when it comes to petroleum products. There is no need for panic regarding prices because the Serbian market has no impact,” said Berjani.

He explained that in Kosovo, the current price of oil per liter is between 1.25 to 1.28 euros, while in Serbia, it is 1.70 euros.

Lulzim Rafuna, President of the Kosovo Chamber of Commerce, also does not expect any rise in fuel prices in Kosovo.

“Serbia is too small a market to cause any disruption. It’s not like America or Germany,” he stated.

However, Rafuna warned that any potential increase in fuel prices in Serbia as a result of the sanctions could have an indirect impact on Kosovo.

He said that Serbia hosts numerous foreign companies, including American, German, Italian, and Turkish firms, whose products are also sold in Kosovo.

An increase in production costs in Serbia for these companies, according to him, could cause “minimal indirect effects” on the Kosovo market.

“The products we import from these foreign companies, which are produced in Serbia, may come to us at a slightly higher cost than now. But this is just a supposition,” said Rafuna.

He added that even in that case, the effect would be minimal, because if Kosovo’s market is not willing to accept the same products from Serbia at slightly higher prices, importers will turn to cheaper products from other countries.

Kosovo imports most goods from abroad – from neighboring countries, the European Union, Turkey, and others.

On average, it imports goods worth 5 billion euros annually – from basic products to construction materials – while it exports goods valued at under 1 billion euros, mostly metal and plastic products.

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