Serbia, NIS has prepared for the events after December 5 and has ensured security in the procurement of crude oil

Published on 5. December 2022., News

The Oil Industry of Serbia (NIS) has prepared for the events after December 5 and has ensured security in the procurement of crude oil, bearing in mind that it is a strategic raw material for the company, the information service of the NIS announced on the occasion of the entry into force of the EU and G7 embargoes. on importing Russian oil by sea and limiting its price to 60 dollars per barrel.

NIS delivers oil that is not of domestic origin exclusively through the “Janaf” oil pipeline, and since December 5, it is not possible to buy Russian oil. However, the unhindered purchase and transportation of oil originating from other countries will continue, states NIS in a letter delivered to the editorial office of the Biznis.rs portal.

NIS imports three quarters of the total amount of oil used for processing, while 25 percent of the oil is of domestic origin. The largest share in the total volume of imported oil has been Iraqi oil “Kirkuk” for years, and the company does not depend on the import of Russian oil.

Last year, the share of Russian oil was around 20 percent of the imported quantity, while this year that percentage was slightly higher due to favorable prices.

The company emphasizes that the Pančevo Oil Refinery is one of the most modern in this part of Europe and that it is possible to process different types of oil. Also, NIS emphasizes that maintaining stability on the domestic market of oil derivatives is the company’s priority, as well as that the Serbian market is properly supplied with all types of fuel.

When it comes to the embargo on the import of Russian oil transported by sea, as well as the price limitation, it is not yet certain how much Russian oil will remain on the global market. Also, Russia has indicated that it may stop deliveries to countries that accept the price cap.

Russia managed to divert a large part of its oil supplies to India, China and Turkey. Analysts estimate that it is likely to find ways to avoid the price cap on some shipments.

In the past months, Serbia has been preparing for an oil embargo on Russian oil and its warehouses are full, Serbian Prime Minister Ana Brnabić said. That ban for our country is a political issue, she said, Biznis reports.

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