Serbia's Energy Crisis: NIS Refinery Shutdown Looms Amid Sanctions

Serbia's NIS oil refinery, owned by Russia, faces shutdown amid US sanctions, jeopardizing fuel supply before winter. President Vucic warns of economic impact and offers Russian owners 50 days to sell their stake. Serbia seeks alternative supplies to counter halted crude deliveries due to sanctions.

Serbia's Russian-owned NIS oil refinery could halt operations within days unless the U.S. lifts sanctions, potentially disrupting fuel supplies ahead of winter, President Aleksandar Vucic announced on Tuesday. Despite adequate short-term fuel reserves, the refinery's closure could severely affect Serbia's economy.

President Vucic offered Russian stakeholders, including Gazprom Neft and Gazprom, a 50-day window to divest their shares or face a state takeover. He highlighted the broader impact of sanctions: "When you impose sanctions against Russia and its companies, they end up hitting our country," Vucic emphasized.

The NIS refinery is on 'hot standby,' facilitating a quick restart when possible. The U.S. Treasury's sanctions, effective from October, led to halted crude deliveries, prompting Serbia to explore alternate fuel supplies. Washington has urged complete Russian divestment from NIS by February 13.

(With inputs from agencies.)