Just days after the United States imposed sanctions on the Serbian Oil Industry (NIS), a majority Russian-owned company, Serbia has yet to outline concrete plans or measures in response. The NIS Board of Directors did not present a plan at an emergency meeting on Friday, according to Serbian officials, who announced new measures ahead of a meeting with Russian representatives on Monday.
Serbian President Aleksandar Vučić stated that the government would take action in response to sanctions aimed at companies allegedly financing Russia’s invasion of Ukraine.
“We have been fair, not only toward Russia but also toward Europe and international law. I want to inform citizens that we will take measures,” Vučić told reporters, according to Beta news agency.
The news that the gas agreement with Russia will be extended until December was described by Vučić as “disappointing,” noting that a long-term deal was expected by May. He explained that the US message was clear: if Serbia moves to nationalize NIS, gas supplies could be cut off on December 31.
Vučić is scheduled to meet with Gazprom Neft CEO Alexander Dyukov and Russian Deputy Energy Minister Pavel Sorokin on Monday to discuss potential solutions regarding the sanctions.
“We expect to hear their proposals and plans for the next three to six months,” said Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović.
An economist, Božo Drašković, told BBC Serbian that Serbia has three options: purchase the Russian stake to satisfy US and European demands, buy it under a temporary agreement, or face refusal from Russia and seek alternative solutions.
The US Treasury imposed sanctions on Russian energy companies, including NIS, earlier this year. Serbia had previously requested multiple delays, postponing the sanctions eight times before they came into effect on October 9.
While high-ranking officials insist there is no immediate risk of fuel shortages and that Serbia’s reserves are sufficient for six months or more, energy experts warn potential disruptions could last several months. NIS fuel stations remain fully supplied, although foreign payment cards are no longer accepted; transactions must now be made with cash, Dina cards, or electronic applications.
Vučić assured citizens that fuel supply issues, such as the need for jerrycans, will not occur and that the government is seeking a resolution. He emphasized that any problems related to sanctions would ideally be solved through coordination between Moscow and Washington.
Meanwhile, Russian Ambassador Aleksandr Bocan-Harčenko confirmed that Gazprom and Russia remain reliable partners for Serbia, ensuring the country’s energy security.
Ahead of the sanctions, NIS’s ownership structure was partially changed. On September 19, the St. Petersburg-based company Intelidžens acquired 11.3% of NIS shares from Gazprom, leaving Gazprom with only a 1% stake. Currently, the largest shareholders are Gazprom Neft (44.85%), the Serbian government (29.87%), and Intelidžens (11.3%), with the remainder held by minor shareholders.
Serbia, along with Belarus, remains the only European country not to have imposed sanctions on Russia since its February 2022 invasion of Ukraine. The US sanctions on NIS are considered the most severe penalty to date against Serbia for its cooperation with Russia.
