(MENAFN) Serbia is prepared to buy out Russia’s shares in Naftna Industrija Srbije (NIS), a crucial energy company in the country, in response to impending US sanctions, President Aleksandar Vucic announced. Speaking to Serbian national broadcaster RTS on Sunday, Vucic described the purchase as a last-resort option to avoid sanctions.

Currently, NIS is mainly owned by Russian energy giants Gazprom Neft, holding 50%, and Gazprom, which owns 6.15%. The Serbian government holds a 29.87% stake. Vucic indicated that Serbia has the financial means to buy the shares immediately, with estimates suggesting a cost between €500 million and €700 million, though the exact value of the company’s shares could vary.

Vucic also questioned the intent behind the potential sanctions, pointing out that selling Russia’s stake in NIS would provide immediate financial benefits to Russia. These sanctions, expected to be imposed by January 10-13, 2025, have raised concerns in Serbia.

Additionally, Serbia’s Minister of Mining and Energy, Dubravka Dedovic, announced that the government is forming a workgroup to negotiate a new long-term natural gas supply agreement with Russia. Dedovic emphasized that maintaining strong ties with Moscow remains a top priority for Belgrade. Meanwhile, NIS has stated that operations continue as normal and there are no disruptions in product availability at its gas stations.

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