Serbia has been granted another extension of its exemption from U.S. sanctions against oil company NIS, which is majority-owned by Russian interests. The exemption will remain in effect until September 30, Serbian Energy Minister Dubravka Đedović Handanović announced.
According to the minister, the license issued by the U.S. Office of Foreign Assets Control (OFAC) allows NIS to continue supplying the market and importing crude oil while work continues on changing the company’s ownership structure.
Negotiations are currently underway over the sale of the Russian-owned majority stake to Hungarian oil and gas company MOL.
“The extended license allows us to continue supplying the market while, at the same time, working toward a long-term solution for NIS,” Đedović Handanović said.
OFAC imposed sanctions on NIS in October last year as part of broader U.S. measures targeting Russia’s energy sector over the war in Ukraine. Washington has demanded the removal of Russian ownership from the company, in which Gazprom Neft and Gazprom together control approximately 56 percent of the shares.
The extension of the sanctions waiver is considered particularly important for Serbia, as the NIS refinery covers around 80 percent of the country’s demand. The fuel supply situation has also been complicated by record-low water levels on the Danube, which have forced vessels and tankers to operate at roughly one-third of their usual capacity. As a result, imports of other fuels during July fell to around 25 percent of the monthly target.
The Serbian minister said negotiations between MOL and Gazprom Neft have entered their final stage.
“The new extension of the license is a signal that there is progress and a willingness to provide the additional time needed to complete this complex transaction,” she said, without providing further details about the agreement.
OFAC has so far granted NIS several temporary sanctions waivers, allowing the company to continue importing crude oil through the Croatian JANAF pipeline, while MOL works to finalize the acquisition following a preliminary agreement reached in January.
The Government of Serbia owns 29.9 percent of NIS shares, while the remaining shares, apart from those held by Russian entities, are owned by minority shareholders and employees.
