Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, announced that the Pančevo refinery, owned by Naftna Industrija Srbije (NIS), which is under U.S. sanctions, will continue operating until November 25. She emphasized that Serbia has sufficient reserves of oil and petroleum products to ensure market stability.
“We continue to monitor the market situation. Our mandatory and commodity reserves are full, as are NIS storage facilities, to prevent any market disruptions,” the minister said during a meeting with the IMF Mission in Belgrade, which concludes its visit tomorrow as part of the second review of Serbia’s economic program.
She noted that the situation is further complicated by sanctions imposed on Russia’s Lukoil, which operates in Serbia under a license valid until November 21, and by the recent fire at Hungary’s MOL refinery.
Đedović Handanović said the government is in constant contact with oil companies, increasing imports of petroleum products despite transport and logistics challenges. NIS will also boost fuel supply to smaller stations to maintain even distribution.
She confirmed that Serbia’s gas supply is stable, with around 534 million cubic meters currently stored, including in Hungary. Expansion of the Banatski Dvor underground gas storage facility is underway, which will raise domestic capacity to 750 million cubic meters next year.
“We are diversifying gas supply routes and building new interconnections with Romania and North Macedonia. Serbia will not face gas shortages—district heating plants have enough fuel, and we have 67,000 tons of fuel oil in state reserves and 57,000 tons with EPS,” she said, adding that negotiations continue with Gazprom for a long-term gas contract.
The minister highlighted key investment priorities: expanding generation capacity from renewable sources, diversifying energy routes, and strengthening transmission infrastructure.
“In the past two years, Serbia has nearly doubled its solar and wind capacity, completed the gas interconnection with Bulgaria, continued construction of the Trans-Balkan Corridor, and commissioned a new thermal unit in Kostolac, which was crucial for energy security last winter,” she said.
Among upcoming projects, the most significant is the reversible hydropower plant Bistrica (RHE Bistrica), where preparatory works will soon begin. Serbia is also preparing to build gas-fired power plants and is exploring the introduction of nuclear energy in cooperation with international partners.
The minister added that Serbia is analyzing the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) on state utility EPS and optimizing its costs to maintain investment plans. Electricity imports this year were planned due to poor hydrological conditions, allowing EPS to preserve coal and hydro reserves while buying on the market when prices were low.
The meeting with the IMF delegation also addressed energy security, the oil and gas sectors, and upcoming investments in mining and energy.
