Serbia Rushes to Secure Oil Firm Amid Sanctions

Serbia has obtained a temporary license from the U.S. to find a buyer for its Russian-controlled oil company, NIS, under sanctions threatening fuel shortages. Gazprom Neft and Gazprom, controlling 56% of NIS, have indicated willingness to transfer ownership. A pressing decision looms for Serbia's government.

In a significant development, Serbia has secured a three-month U.S. license to find a new buyer for its Russian-owned oil firm, NIS, currently under sanctions that jeopardize fuel supplies as winter nears, according to energy minister Dubravka Djedovic-Handanovic.

This move follows a request from the majority stakeholders, Russia's Gazprom Neft and Gazprom, to the U.S. Treasury's Office of Foreign Assets Control (OFAC) expressing willingness to relinquish control. Sanctions on Russia's oil sector, which include Gazprom, were initially instituted in January but have been deferred for NIS until finally being enforced on October 8.

Minister Djedovic-Handanovic, on live television, stated that the U.S. Treasury has allowed a timeframe until February 13 for negotiation. Meanwhile, banks have halted NIS transactions and Croatia's JANAF pipeline has ceased crude delivery. The Serbian government might consider assuming control of NIS, although President Vucic opposes such a move.

(With inputs from agencies.)