The Serbian oil industry has submitted a request to the U.S. Department of the Treasury to remove NIS (Naftna Industrija Srbije) from the SDN (Specially Designated Nationals) list, as well as a new request for an extension of the special license initially issued until March 28. NIS stated that since the process of removal from the SDN list is lengthy, they have submitted a request to extend the special license, which was issued on February 26 and is valid until March 28 of this year.
The purpose of this request is to delay the full implementation of sanctions against NIS after the expiration of the license on March 28. NIS emphasized that all of these actions aim to ensure the smooth operational functioning of the company until it is removed from the SDN list.
The company’s priorities remain ensuring the regular supply of domestic markets with all types of petroleum products, maintaining normal operations, and taking care of employees. The public will be informed in a timely manner of any new circumstances that may impact the company’s operations, according to the statement.
Dušan Bajatović, the General Director of Srbijagas, stated that there is a possibility of further delaying the U.S. sanctions on NIS, but only if Serbia presents an action plan within the next month in agreement with both the Americans and the Russians.
“The action plan is essential because it includes specific steps and measures. We need to agree with the Americans, Russians, and ourselves because these are political sanctions that unfortunately have serious economic and budgetary effects on Serbia,” said Bajatović on RTS. He reminded that the ownership structure of NIS was changed, with 45% of the company now owned by Gazprom Neft, which is not subject to sanctions.
“Gazprom owns 11%, 30% belongs to Serbia, and the rest is owned by small shareholders. According to the sanctions documentation, the conditions for NIS to no longer be under sanctions have been met. Lawyers have informed OFAC that they are requesting delisting, or removal of NIS from the agenda. A formal request for an extension has already been sent,” he said.
Bajatović expressed optimism, citing the bureaucratic procedures that “require some movement.”
“What is positive at this moment is that the banks are not yet nervous,” he added.
The one-month delayed deadline for the implementation of U.S. sanctions against NIS will expire at midnight on March 28.
