The implementation of U.S. sanctions against the Naftna Industrija Srbije (NIS) began on October 9, marking a significant escalation in Western pressure on Serbia’s energy sector due to its Russian ties.
According to Radio Television of Serbia, NIS stated that its priority remains the regular supply of oil derivatives to the domestic market and the protection of employees’ social stability. The company confirmed that it has sufficient oil reserves for processing and that gas stations are fully stocked.
NIS also advised customers that, in case foreign payment cards stop functioning, payments will still be possible through domestic cards, cash, and the “IPS pokaži” method. The company emphasized that it is working with the Serbian government and shareholders to overcome the challenges.
The U.S. first placed NIS under sanctions on January 10, 2025, citing “secondary risk” due to its majority Russian ownership, specifically by Gazprom Neft, a subsidiary of Russia’s Gazprom. Washington delayed the implementation eight times before finally enforcing it this week.
The sanctions aim to curb Russian energy revenue used to finance the war in Ukraine. Serbia’s President Aleksandar Vučić reacted sharply, saying Belgrade would discuss the issue only with Russia, claiming that the U.S. and Europe “have made their decision” and that Serbia “has nothing left to negotiate” with Washington.
Despite multiple ownership changes, Gazprom Neft still controls 44.9% of NIS, while the Serbian government holds 29.9%. Analysts warn that the sanctions could result in fuel shortages, higher prices, and disruptions in financial transactions, affecting not only Serbia but also neighboring countries where NIS operates.
NIS reported losses of €30 million in the first half of 2025, partly due to U.S. sanctions pressure. Experts note that the sanctions may further expose Serbia’s deep energy dependence on Russia, which remains a central obstacle to aligning with EU and U.S. policies.
