Serbia’s Largest Oil Producer Gets Another U.S. Sanctions Delay

TDT | Manama

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Belgrade, Serbia – Serbia’s largest oil company, the Serbian Oil Industry (NIS), has received another 30-day delay from U.S. sanctions, marking the sixth time the majority Russian-owned firm has been granted a reprieve, the country’s energy minister announced Wednesday.

NIS operates Serbia’s only oil refinery and has repeatedly negotiated extensions since the sanctions were first announced as part of Washington’s efforts to target Russia’s energy sector.

“The refinery now has enough crude oil to continue operating. We thank the U.S. administration for its understanding,” said Serbian Energy Minister Dubravka Djedovic Handanovic.

The latest extension delays the sanctions until September 26. If enforced, the measures would have forced the removal of Russian interests in NIS, requiring either the sale of their shares or nationalisation of the company.

NIS is majority-owned by Russian energy giant Gazprom. The company has successfully negotiated six delays since the sanctions were initially planned to take effect in February.

The U.S. sanctions, introduced under President Joe Biden, aim to reduce Moscow’s profits from its energy exports following Russia’s invasion of Ukraine.

Serbia has maintained close ties with Russia and has refused to impose sanctions, unlike the European Union, which it hopes to join. The country also relies heavily on Russian gas, supplied through NIS.

A contract between Belgrade and Moscow, signed in spring 2022, was set to expire at the end of May but has now been extended until the end of September.