Serbia's Bold Move to Nationalize Russian-Owned NIS Amid U.S. Sanctions

Serbia plans an amendment to take over Russian-owned, U.S.-sanctioned oil refiner NIS. This move comes as the U.S. sanctions Russia's oil sector, including NIS. Serbian parliament will debate the amendment, which is critical as President Vucic warns of potential shutdown affecting fuel supplies.

In a decisive response to U.S. sanctions, Serbia is gearing up to amend its budget law, allowing it to seize control of the Russian-owned oil refiner NIS. The decision was confirmed by the parliament speaker, underscoring the urgency to stabilize the country's oil supply infrastructure.

The move follows actions by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC), which sanctioned Russia's NIS, managed predominantly by Gazprom Neft and Gazprom. Despite previous waivers, these sanctions took effect in October, placing Serbia in a difficult situation.

President Aleksandar Vucic has issued a stark warning: if the U.S. sanctions aren't lifted, the NIS refinery could cease operations within days, compromising Serbia's fuel supplies ahead of the winter season. The Serbian parliament is set to debate the proposed amendments shortly.

(With inputs from agencies.)