Serbia Faces Oil Supply Threat Amid U.S. Sanctions on Russian Interests

Serbia may lose access to crucial oil supplies due to failed negotiations to prevent U.S. sanctions on its sole oil refinery, NIS. President Vucic noted the unlikelihood of a last-minute resolution. Gazprom Neft's reduced stake in NIS reflects broader Western sanctions on Russian oil interests.

Serbia is on the brink of losing vital oil imports as efforts to dodge the imposition of U.S. sanctions on its primary oil refinery have collapsed, President Aleksandar Vucic revealed in an interview. A crucial waiver is set to expire, potentially cutting off crude supplies to NIS, the country's sole refinery.

The U.S. Treasury's Office of Foreign Assets Control initially imposed sanctions on Russia's oil sector and gave Gazprom Neft a deadline to exit its ownership of NIS. Amendments in shareholdings were made to circumvent sanctions, reflecting on how deeper Western penalties have affected Russian-controlled entities.

NIS imports about 80% of its required oil through Croatia's Janaf, with an agreement made to transport up to 10 million tons of crude oil by 2026. Amidst this, potential EU-driven actions could disrupt these arrangements, with Croatia's Economy Minister hinting at purchasing Russia's stakes in NIS.

(With inputs from agencies.)