(MENAFN) Serbia is evaluating whether to assume control of its sole oil refinery, NIS (Petroleum Industry of Serbia), which is currently majority-owned by Russia’s Gazprom, the country’s energy minister, Dubravka Djedovic-Handanovic, said on Saturday.

According to the minister, recent US sanctions have left Belgrade with limited choices if it wants the refinery to remain operational. The restrictions, introduced in October, led neighboring Croatia to halt crude deliveries, creating the risk of a complete shutdown. They also disrupted operations at NIS-run gas stations, which can no longer accept payments made with Visa, Mastercard, or American Express.

”In the coming days we may face some of the most difficult decisions in our history,” she stated at a press conference, explaining that Serbia may need to “take over the company and then afterwards determine and carry out compensation for damages.”
She added that she hopes “our Russian friends will understand the gravity of the situation and will help us overcome it.”

The matter is expected to be discussed on Sunday during a government meeting attended by President Aleksandar Vucic and the heads of major state companies.

NIS plays a central role in the Balkan energy sector, operating the Pancevo refinery near Belgrade and managing a network of more than 400 fuel stations. Gazprom Neft holds 44.85% of the shares, Gazprom owns 11.3%, and Serbia controls nearly 29.87%.

Earlier this week, the Russian shareholders requested that Washington extend NIS’s operating license while they worked on transferring control to a different buyer. However, Djedovic-Handanovic said the US rejected the idea, demanding a full exit of Russian ownership and refusing to grant the firm “a single day to continue operating.”

Serbia has long pushed back against pressure from Western governments to align its foreign policy with the EU, even as it seeks membership. Brussels and Washington have urged Belgrade to sever energy ties with Moscow, while Serbian officials accuse Western nations of supporting mass protests in the country.

Concerns over pressure to abandon Russian crude have also been voiced by several EU states, including Hungary and Slovakia. Earlier tensions grew after Ukrainian strikes damaged parts of the Druzhba pipeline, which supplies Russian oil to Eastern Europe. In January, Hungary and Serbia agreed to speed up plans to link Serbian consumers to the Druzhba network.

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