US Sanctions Threaten Serbia’s Russian-Controlled Oil Sector

Belgrade, Oct 9 (AP) In a move that could impact Serbia's energy sector, the United States has imposed sanctions on Serbia’s primary oil provider, a company largely controlled by Russia, it emerged on Thursday.

Serbia's energy needs almost wholly depend on Russian gas and oil, primarily transported through pipelines running through Croatia and neighboring countries. The distribution is managed by the Petroleum Industry of Serbia (NIS), which is predominantly owned by Russia's state oil giant Gazprom Neft.

On Thursday, NIS announced its unsuccessful bid to secure an extension for US sanctions, sparking concerns about its long-term ability to guarantee oil and gas supply.

“The special license from the US Department of the Treasury, which ensures smooth operations, has not been renewed,” NIS stated, but assured it had enough reserves to continue serving its customers for an extended period.

The company also warned of potential obstacles at NIS gas stations for customers using foreign bank credit cards, while noting that cash payments will remain unaffected.

The US Treasury's Office of Foreign Assets Control initially sanctioned Russia’s oil sector on January 10, demanding Gazprom Neft to divest its stake in NIS, a step that remains incomplete.

US officials have so far remained silent on the matter.

Despite formally pursuing European Union membership, Serbia has abstained from Western sanctions against Russia in response to its Ukraine invasion, partly due to its reliance on Russian gas supplies.

Serbia's pro-Russian leader, President Aleksandar Vucic, faces mounting challenges amid his increasingly authoritarian decade-long tenure.

Protests erupted after the tragic collapse of a railway station canopy in the north, killing 16 people nearly a year ago. Many Serbians attribute the disaster to widespread corruption and nepotism among officials, particularly in projects involving Chinese state enterprises. (AP) GRS GRS

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