The Office for Asset Management Abroad (OFAC), part of the U.S. Department of the Treasury, is expected to find a way to avoid imposing sanctions on the Serbian Oil Industry, possibly by delaying the sanctions multiple times or using another method, according to energy expert Miloš Zdravković.
While Zdravković did not have specific information regarding the decision on sanctions, he shared insights based on his knowledge of the oil industry. He noted that oil companies rarely engage in direct conflict with one another, and that behind these large corporations are powerful forces that influence policy.
“Oil companies significantly shape the decisions of their governments,” Zdravković said. “For example, during President Donald Trump’s first term, Secretary of State Rex Tillerson was previously the CEO of ExxonMobil, one of the largest American energy companies, owned by the Rockefeller family.”
Zdravković also emphasized that Trump’s rise to the presidency wasn’t solely due to his personal wealth, which he described as “insignificant” compared to other American billionaires, but rather the backing of major corporations.
According to Zdravković, neither the current nor the previous government could have impacted the delay in sanctions. He explained that while NIS, the Serbian oil company, accounts for about 4.5% of Serbia’s GDP, it represents only a small fraction of the U.S. economy.
The OFAK granted a 30-day extension on sanctions against NIS, which were initially set to take effect at 6 a.m. today. This delay, according to the Serbian government, reflects an understanding of the company’s importance to Serbia’s economy, regional energy stability, and its citizens. However, the extension does not affect American citizens or the U.S. financial system. U.S. citizens will not be allowed to conduct business with NIS and may be placed on the OFAC sanctions list if they continue their dealings.
NIS had previously requested a 90-day delay from OFAK, with the support of both the Serbian and Hungarian governments. The sanctions are now set to be reconsidered on March 28.
On the same day, NIS announced on the Belgrade Stock Exchange that Gazpromneft, a subsidiary of Russia’s Gazprom, had reduced its ownership stake in NIS from 50% to 44.84%. Gazprom, in turn, increased its stake in NIS from 6.15% to 11.30%, making the latter part of the company that is not subject to sanctions.
Previously, Gazpromneft held a 50% stake, JAD Gazprom owned 6.15%, the Serbian government held 29.8%, and other minority shareholders controlled 13.98%. While the restructuring shifted shares from one Russian company to another, Russian companies still hold the majority share in NIS.
The Biden administration had previously expressed intentions to fully eliminate Russian ownership from NIS through sanctions. On January 10, the U.S. Department of the Treasury announced sanctions targeting Russian companies Surgutneft and Gazpromneft, along with their subsidiaries, as part of efforts to limit Moscow’s revenue from energy exports that fund the war in Ukraine.
