Serbia's Energy Crisis: NIS Oil Refinery at Risk Amid Sanctions

Serbia's Russia-owned NIS oil refinery faces imminent shutdown due to U.S. sanctions, threatening fuel supplies before winter. President Vucic warned of economic impacts and potential state takeover unless Russian stakeholders divest. Sanctions have disrupted operations and supply lines, forcing Serbia to seek alternative resources.

Serbia's NIS oil refinery, owned by Russian companies, may cease operations in days without the lifting of U.S. sanctions, President Aleksandar Vucic announced in a televised address. This potential shutdown threatens Serbia's fuel supplies just as winter approaches, although short-term reserves are reportedly sufficient.

Vucic has given Russian stakeholders, including Gazprom Neft and Gazprom, a 50-day ultimatum to either sell their stakes or face a possible state takeover. He highlighted the adverse effects that sanctions against Russia can have on Serbia's economy and its energy supply lines.

Sanctions from the U.S. Treasury Department's OFAC came into effect in October, impacting the operations of NIS. This has caused banks to halt payment processing and disrupted crude deliveries, prompting Serbia to explore other sources of energy ahead of the winter months.

(With inputs from agencies.)