Fifth delay: U.S. again postpones sanctions on Serbian subsidiary of Gazprom Neft
Photo: NIS

For the fifth time, the U.S. Department of the Treasury has postponed sanctions against Naftna Industrija Srbije (NIS), a Serbian oil company with significant Russian ownership. This was reported by Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, according to the local outlet Telegraf.

According to the minister, the latest extension—now valid until August 27—was the result of "a difficult and intense diplomatic effort" involving both the Serbian government and President Aleksandar Vučić.

Đedović Handanović emphasized that despite challenging circumstances, NIS continues to regularly supply the domestic market with all types of petroleum products and remains committed to ensuring Serbia’s energy security.

"At this point, securing a longer delay was impossible. This is a matter of global politics and complex international relations," the minister said.

NIS is involved in hydrocarbon exploration and production. The company also owns a large refinery in Pančevo, with a processing capacity of 4.8 million tons of oil per year. This facility meets a substantial portion of Serbia’s energy needs, and sanctions could threaten the company’s ability to maintain oil supplies. In addition, NIS operates a network of over 400 gas stations across Bosnia and Herzegovina, Bulgaria, and Romania.

On January 10, in the final days of Joe Biden’s first term, the United States imposed sanctions on several Russian energy firms—including Surgutneftegas, Gazprom Neft, and their subsidiaries—in an effort to reduce Russia’s energy revenues, which are used by Vladimir Putin’s regime to fund its war against Ukraine.

In 2008, Gazprom Neft acquired a 51% stake in NIS through a non-competitive process for €400 million. Today, NIS is the second-largest company in Serbia.

At the time sanctions were introduced, Gazprom Neft’s stake had already decreased to 50%, and on February 26, it announced a further reduction to 44.85%. Simultaneously, Gazprom PJSC increased its shareholding from 6.15% to 11.3%.

The Serbian government holds approximately 30% of NIS, with the remainder owned by retail shareholders.

  • U.S. sanctions require not just a reduction of Russian ownership in NIS, but a complete withdrawal of Russian entities from the company.