American sanctions on Serbia’s oil industry, due to majority Russian ownership of NIS, have raised concerns about the company’s future. NIS’s largest shareholder is Gazpromneft, holding 50%, with Gazprom owning an additional 6.15%. The Serbian state owns 29.87%, and small shareholders own 13.98%. To avoid EU sanctions, Gazprom purchased 6.15% of shares from Gazpromneft, but with the introduction of US sanctions, the situation has become uncertain.
Experts suggest four options for resolving the issue: the Serbian state could buy out the Russian shares, nationalize the stake, sell it to a foreign company, or negotiate a deal with Russia for future repurchase. Serbia’s government is determined to avoid selling NIS to another company and is prepared to buy out the Russian shares.
President Vučić confirmed that Serbia has funds to purchase the Russian stake, though experts warn this could strain the country’s budget. Finance Minister Mali reassured that the government has a solution, and the situation will depend on US sanctions, with discussions set to take place between Serbia and Russia.
The future of NIS could also involve a potential buyer from a non-Western country, such as Azerbaijan’s SOCAR, as Western companies are unable to purchase due to sanctions.
Before Gazpromneft’s acquisition of NIS in 2008, the company was state-owned, and Serbia is now faced with the decision of whether to keep the company under state ownership or sell it to a foreign entity once the sanctions are resolved. The cost of buying back the Russian stake is uncertain but could range from several hundred million to 1.5 billion euros, depending on market conditions.
