US delays sanctions again on Serbia’s Russia-linked oil firm
Donald Trump (photo: Getty Images)
The US has postponed sanctions against the Serbian oil company NIS for another week. The restrictions were originally set to take effect on October 1, states Serbian President Aleksandar Vučić.
The sanctions, set to take effect on October 1, were part of measures by the US Treasury Department’s Office of Foreign Assets Control targeting the Russian oil sector, announced on January 10, 2025.
At that time, the US added Serbia’s largest oil company, Gazprom Neft, to the sanctions list due to the so-called secondary risk stemming from the company’s predominantly Russian ownership in light of Russia’s invasion of Ukraine.
Gazprom Neft was given 45 days to exit its ownership of NIS.
After a series of delays, the US had announced that sanctions would take effect on October 1, but it is now reported that the start has been postponed by a week.
President Vučić noted that the US showed respect for Serbia’s position and hinted at the possibility of certain concessions from Belgrade to avoid sanctions, though details are not yet known:
“Whether that will be enough, and whether it would be what Americans want, we will see,” Vučić said.
He also reiterated that Serbia is a collateral victim of the relations between the Americans and the Russians.
Vučić said that his government had been extremely correct toward its Russian and American partners and would try to remain so, but he warned that people should know they would have to pay an extremely high price.
Despite its aspirations to join the EU, Serbia remains one of the few European countries that continues to import Russian gas, drawing pressure from Western countries to comply with sanctions against Russia.
US sanctions against NIS
Serbia continues to cooperate with Russia in the energy sector, including signing a 2.5-year gas supply agreement, which guarantees an annual delivery of 2.5 billion cubic meters of gas.
As for NIS, it is the only oil refining company in Serbia, supplying the majority of the country’s oil needs. US sanctions could affect crude oil deliveries through the Croatian JANAF pipeline.
Currently, NIS’s ownership structure is as follows: Gazprom Neft owns 44.9%, Gazprom 11.3%, and the Serbian government 29.9%. The company operates Serbia’s only oil refinery, located in Pančevo near Belgrade, with a capacity of 4.8 million tons per year.
In February 2025, Gazprom Neft transferred about 5.15% of NIS shares to Gazprom in an attempt to avoid sanctions.
