Serbia is grappling with fresh economic uncertainty following the United States’ threat to impose sanctions on NIS, the country’s largest oil company, which is majority-owned by Russian capital. These potential sanctions are part of a broader international strategy aimed at pressuring Russia over its ongoing war in Ukraine. The situation has caused anxiety both among citizens and the wider economy, with many fearing that the sanctions could disrupt daily life by affecting fuel supply and financial transactions.
One of the immediate concerns revolves around the possibility that payments for fuel at NIS gas stations may be blocked when using foreign bank cards. This is just one of the issues raised by Prof. Dr. Mihajlo Rabrenović, a management expert, who appeared on the Kurir television program “Redakcija”. According to Rabrenović, secondary sanctions target not just the company itself but also anyone doing business with it, including banks and other service providers.
“Sanctions are part of a broader strategy to exert economic pressure on Russia, but Serbia is also feeling the consequences because its oil industry has a Russian majority shareholder,” Rabrenović explained. “There’s a real possibility that customers may find their foreign bank cards rejected at NIS pumps, or oil sector employees could struggle to withdraw their wages from banks that refuse to do business with Russian companies.”
The complexity of the situation is further heightened by the recent actions of Western companies. Some apps related to Serbia’s oil industry have already been withdrawn from certain platforms, which experts view as “weak signals” of an impending blockade. In response, Serbia has been exploring ways to diversify its energy supply. For instance, the construction of a new oil pipeline between Novi Sad and Aldja in Hungary has been proposed, enabling oil to be transported through the European “Družba” pipeline system.
However, Rabrenović points out a significant hurdle in this plan: “Russian oil cannot be transported through this pipeline due to existing European sanctions. Diversification is important, but it doesn’t resolve all the issues.”
Rabrenović stresses that the current crisis is not just an economic issue but also a reflection of a larger geopolitical struggle. “Small countries like Serbia are often caught in the crossfire of global power plays. Through these sanctions, the U.S. is strengthening its position in the global oil and gas market, while Serbia’s room to maneuver is shrinking,” he said.
Ultimately, Rabrenović believes Serbia will need to make tough but well-considered decisions to protect both its citizens and its economy. “Serbia will have to carefully balance its interests in these difficult times,” he concluded.