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Serbia requests delay in sanctions for NIS as U.S. deadline approaches

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The Oil Industry of Serbia (NIS) has officially requested the Department of the Treasury’s Office of Foreign Assets Control (OFAC) in the United States for a delay in sanctions. This request has been supported by the governments of Serbia and Hungary, as stated by the Minister of Mining and Energy, Dubravka Đedović Handanović. She added that the request seeks to postpone the sanctions for at least 90 days.

“The request pertains to obtaining general or specific licenses that would allow NIS to continue operations while seeking an acceptable solution for ownership structure and management. The aim is for the company, which is regionally and strategically important for energy stability, to continue its business,” said the minister, as reported by N1.

The government of the Republic of Serbia supports the request for such a license to NIS, as sanctions would undermine the company’s ability to supply citizens of Serbia with oil and petroleum products.

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Considering NIS’s importance to both the Serbian and regional economies, the minister emphasized, “We urgently request OFAC to consider providing temporary assistance by postponing sanctions for at least 90 days, while we evaluate a sustainable solution that would lead to the lifting of sanctions.”

The minister assured that employees of NIS and citizens have no reason to worry, as the government will continue to protect Serbia’s interests, as it has done in the past. She reminded that U.S. officials have repeatedly stated that sanctions are not directed against Serbia or its citizens, and therefore, Serbia hopes for a constructive continuation of dialogue to avoid disrupting the energy stability of Serbia and the entire region.

As a reminder, in early January, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that the Oil Industry of Serbia was at risk of secondary sanctions if it conducted transactions with the Russian company Gazprom Neft, which is its majority shareholder.

Serbian President Aleksandar Vučić stated in an urgent address that the U.S. had imposed sanctions on NIS, which he described as the toughest sanctions ever placed on a company in Serbia. “They are asking us to completely remove Russian interest from NIS. We will wait to see what further interpretations will be… They do not allow for a 49% stake, but a complete exit from NIS,” he said at the time, adding that “Serbia has only 45 days to resolve this, until February 25.”

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“By that date, we not only need to complete the signing but also the closing of any agreements with the Russian side. Only financial transactions may be extended until March 12, but even that must be approved by OFAC within the U.S. government. It’s possible that they will say we cannot transfer money to anyone… I believe it won’t go that far,” Vučić said during his address.

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