The Serbian oil company, Naftna Industrija Srbije (NIS), has submitted a new request to the U.S. Department of the Treasury for a special license to delay the full implementation of sanctions. This request aims to allow the company to continue its operations beyond the April 28 deadline, which was set by a license issued on March 28, 2025.
NIS also reminded that on March 14, it filed a request to be removed from the Specially Designated Nationals (SDN) list, a process that can take a considerable amount of time. Despite the complex circumstances, NIS remains committed to ensuring the stable supply of derivatives to the domestic market and maintaining social stability for its employees. The company assured the public that it would provide timely updates on any developments that might affect its operations.
NIS is expected to release its first-quarter financial report soon, which will shed light on the impact of being placed on the U.S. sanctions list by the Biden administration. Although the company is expected to report a positive result, revenues are likely to be much lower than initially projected.
Dubravka Đedović Handanović, the Minister of Energy, stated that Serbia has been engaged in intense diplomatic efforts for the past four months to prevent the sanctions from being imposed on NIS, as such sanctions would significantly affect Serbian citizens and the economy. She emphasized that the delay in the sanctions’ implementation twice already shows a degree of understanding from the U.S. side regarding Serbia’s situation. The government continues to take all available actions to avoid the sanctions, even though the decision ultimately depends on the U.S. authorities.
Dušan Bajatović, the director of Srbijagas, pointed out that two processes are currently underway for NIS: one is the request for a new license to delay sanctions, and the other is the process of delisting, or the complete removal of sanctions. He expects a positive response from the Office of Foreign Assets Control (OFAC) as has been the case in the past. NIS has no restrictions on how many times it can submit requests for a delay, which it will continue to do if delisting does not occur.
Bajatović also mentioned that Gazpromneft, the majority owner of NIS until recently, no longer holds a controlling stake, as it now owns less than 50%. The majority stake has been transferred to Gazprom, which is not subject to sanctions, thus addressing one of the key concerns. However, if the insistence remains for Russian capital to fully exit all companies, it will take a considerable amount of time to resolve.
Nebojša Oberknežev, an analyst in the oil and gas sector, believes that the sanctions on NIS will likely be delayed by another month. He explained that the license requested is the same one NIS has submitted before when the deadline for sanctions is approaching. He also pointed out that the delisting process is lengthy.
The special license granted by the U.S. Treasury allows NIS to carry out and maintain operations, contracts, and other agreements, including those involving its subsidiaries. It also enables the execution of financial derivative contracts and transactions related to diplomatic or consular operations outside Russia involving NIS or its subsidiaries.
Regarding Serbia’s future energy plans, Bajatović stated that he expects discussions about a new gas agreement during the upcoming meeting between the Serbian and Russian presidents on May 9. The current three-year agreement expires on May 30, and while an ideal agreement would last up to 10 years, flexibility and price will be key factors. Bajatović anticipates a better price for gas, considering the overall Serbian-Russian relations and the decreasing oil prices.
Bajatović also expressed satisfaction with the ongoing expansion of the Banatski Dvor underground gas storage facility, which will meet a significant portion of Serbia’s needs. As gas consumption increases, additional storage facilities will be developed in the country.
