The United States has imposed sanctions on Serbia’s state-owned oil company, NIS, which is majority-controlled by Russia’s Gazprom Neft. These sanctions, which were not renewed after a one-week waiver, have triggered a crisis in the Balkan nation’s energy sector. The company, which operates Serbia’s only refinery in Pancevo, near Belgrade, is now unable to purchase crude oil or export refined products, putting its operations at risk.
President Aleksandar Vucic has warned that the refinery, a critical supplier of gasoline and jet fuel, could be forced to shut down by November 1 if crude oil deliveries do not resume. Croatia, which previously supplied the refinery’s crude, has halted all business with NIS, exacerbating the situation. Analysts suggest that the company’s only recourse is for the US to reverse the sanctions or for its Russian shareholders to divest. The impact is already being felt by consumers, as NIS has announced that its network of over 350 filling stations will no longer accept American Express, Mastercard, or Visa cards.
The sanctions have also highlighted Serbia’s complex geopolitical position. Although the country formally seeks to join the EU, it has refused to participate in Western sanctions on Russia over the Ukraine conflict. This stance has put strain on its relations with Brussels and Washington, which have repeatedly pushed Belgrade to sever its energy ties with Moscow, a key historical partner. NIS, which is owned by Gazprom Neft (44.85%), Gazprom (11.3%), and the Serbian state (29.87%), now faces a critical juncture as its operations and the country’s energy security are at stake.
The situation has sparked concerns about Serbia’s energy independence and its ability to maintain economic stability amid international pressures. As the deadline approaches, the government is scrambling to find solutions, including diplomatic efforts and potential financial support from other sources. The outcome of this crisis could have long-term implications for Serbia’s energy policy and its relationship with both the West and Russia.