Serbia secures further sanctions waiver for Russian-owned NIS oil firm

Serbia has secured a further ​sanctions waiver from the United ‌States ​for its Russian-owned NIS oil firm until September 30, energy minister Dubravka Djedovic Handanovic wrote on Instagram on Friday.

The waiver granted by ‌the U.S. Office of Foreign Assets Control will allow NIS, which operates Serbia's only oil refinery, to continue importing crude oil until the sale of a Russian majority stake in the company ‌to Hungarian oil and gas company MOL. "The extended licence allows us to continue supplying (the market), ‌while at the same time working on a long-term solution for NIS," Djedovic Handanovic said.

OFAC imposed sanctions on NIS last October as part of wider measures targeting Russia's energy sector over the war in Ukraine, and ⁠demanded divestment ​of the combined ⁠56% stake held by Gazprom Neft and Gazprom. The waiver is crucial for Serbia as NIS refinery covers around 80% ⁠of the country's demand. Other fuel imports to the Balkan country fell to 25% of their ​monthly target for July as record-low water levels on the River Danube forced barges ⁠and tankers to operate at a third of their cargo capacity. Djedovic Handanovic said negotiations between MOL and Gazprom Neft ⁠are ​in their final phase.

"The new licence extension is a signal that there is progress and a willingness to ensure the additional necessary time to complete this complex transaction," ⁠she said without elaborating. OFAC has granted NIS several sanctions waivers allowing it to import crude via Croatia's ⁠Janaf pipeline while ⁠MOL completes the acquisition after signing a provisional agreement in January.

The Serbian government owns 29.9% of NIS, with the remainder held by small shareholders ‌and employees.