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Serbia clashes with Russia over oil dispute, US sanctions
(MENAFN) Serbia finds itself in a difficult position as US sanctions targeting Russian oil take effect, straining its longstanding ties with Moscow.
Tensions have risen over Russian gas deliveries and arms trade, with Serbian President Aleksandar Vucic and Kremlin officials exchanging sharp remarks. The central concern, however, is the future of Serbia’s national oil company, Petroleum Industry of Serbia (NIS).
Russian firms Gazprom and Gazprom Neft control more than half of NIS, leaving the company exposed after US sanctions were imposed last month over its connections to Russia’s energy sector. Serbian Energy Minister Dubravka Djedovic Handanovic told a news outlet that the Russian owners have requested a US waiver, signaling “the Russian side was ready to transfer the control and influence upon the company to a third party.” She cautioned that “time is running out.”
The effects of the sanctions were felt immediately. NIS petrol stations have posted notices warning that Visa and Mastercard are no longer accepted, as the US-based payment networks ceased transactions. Similar restrictions affect Gazprom-owned service stations. At a motorway outlet between Novi Sad and Belgrade, staff such as Bojan checked that drivers could pay, noting that roughly one in ten – mostly foreign customers – could not. A cash machine has been installed inside the station as a precaution.
NIS manages both of Serbia’s oil refineries, supplying over 80% of the country’s petrol and diesel, as well as nearly all jet and heavy fuels. Being landlocked, Serbia depends on Croatia’s Janaf pipeline for oil delivery, but the flow has stopped since the sanctions took effect. With crude supplies expected to run out before the end of November, Handanovic warned that “time is running out.”
Serbia is not alone in confronting the impact of US sanctions in the Balkans. Neighboring Bulgaria has passed legislation to seize control of its sole oil refinery from Russian company Lukoil ahead of sanctions on November 21, while Hungary’s Prime Minister Viktor Orban secured a one-year exemption from US President Donald Trump.
Tensions have risen over Russian gas deliveries and arms trade, with Serbian President Aleksandar Vucic and Kremlin officials exchanging sharp remarks. The central concern, however, is the future of Serbia’s national oil company, Petroleum Industry of Serbia (NIS).
Russian firms Gazprom and Gazprom Neft control more than half of NIS, leaving the company exposed after US sanctions were imposed last month over its connections to Russia’s energy sector. Serbian Energy Minister Dubravka Djedovic Handanovic told a news outlet that the Russian owners have requested a US waiver, signaling “the Russian side was ready to transfer the control and influence upon the company to a third party.” She cautioned that “time is running out.”
The effects of the sanctions were felt immediately. NIS petrol stations have posted notices warning that Visa and Mastercard are no longer accepted, as the US-based payment networks ceased transactions. Similar restrictions affect Gazprom-owned service stations. At a motorway outlet between Novi Sad and Belgrade, staff such as Bojan checked that drivers could pay, noting that roughly one in ten – mostly foreign customers – could not. A cash machine has been installed inside the station as a precaution.
NIS manages both of Serbia’s oil refineries, supplying over 80% of the country’s petrol and diesel, as well as nearly all jet and heavy fuels. Being landlocked, Serbia depends on Croatia’s Janaf pipeline for oil delivery, but the flow has stopped since the sanctions took effect. With crude supplies expected to run out before the end of November, Handanovic warned that “time is running out.”
Serbia is not alone in confronting the impact of US sanctions in the Balkans. Neighboring Bulgaria has passed legislation to seize control of its sole oil refinery from Russian company Lukoil ahead of sanctions on November 21, while Hungary’s Prime Minister Viktor Orban secured a one-year exemption from US President Donald Trump.
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