Serbia Secures 30-Day US Sanctions Waiver for Russian-Owned Oil Firm NIS

Serbia has secured another temporary sanctions waiver from the United States for its majority Russian-owned oil company, Naftna Industrija Srbije (NIS), allowing it to continue importing crude oil until August 28. The move provides a crucial window for the firm, which supplies most of Serbia's fuel, as a divestment deal with a European energy company nears completion, according to Energy Minister Dubravka Djedovic Handanovic.

Waiver Provides Breathing Room

The waiver, granted by the U.S. Office of Foreign Assets Control (OFAC), gives NIS critical time to manage its crude oil supply. "Thirty days is good news; NIS will have time to purchase and bring in enough crude oil," Djedovic Handanovic said Friday on state television.

NIS operates Serbia's only oil refinery, located in Pancevo, and covers approximately 80% of the country's domestic fuel demand. The company relies on crude oil imports delivered via the Janaf pipeline, which runs through Croatia.

Divestment Deal in Focus

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The extension is intended to facilitate the finalization of a deal for Hungary’s oil and gas firm MOL to purchase the controlling Russian stake in NIS. The United States imposed sanctions on NIS in October as part of broader measures against Russia's energy sector, mandating the divestment of its majority owners, Gazprom Neft and Gazprom, which together hold a 56% stake.

Serbian President Aleksandar Vucic said Friday that he expects the deal to be finalized in the coming days. MOL signed a provisional agreement to acquire the Russian stake in January. The Serbian government holds a 29.9% stake in NIS, with the remainder held by smaller shareholders and employees.

Context for Serbia's Energy Market

The continued operation of the Pancevo refinery is vital for Serbia's energy stability, particularly as other import logistics face challenges. Fuel imports into the Balkan nation have been hampered by record-low water levels on the Danube River, a key transport artery. This has forced barges and tankers to operate at significantly reduced cargo capacity, increasing the country's reliance on NIS's domestic production.