US Demands Russian Exit for Serbia’s Oil Refinery

(MENAFN) The United States has declined to permit Serbia’s sole oil refinery to restart operations unless the Russian co-owners relinquish their holdings, Serbian Energy Minister Dubravka Dedovic Handanovic announced on Saturday.

The Petroleum Industry of Serbia (NIS), which manages the refinery, faced US sanctions last month. Since then, banks have ceased processing transactions, and Croatia’s JANAF pipeline, Serbia’s main crude oil supply route, has stopped deliveries. Previously, a news agency reported that the refinery could only function until November 25 without new shipments.

Russian energy corporations Gazprom and Gazprom Neft jointly hold 56% of NIS, while the Serbian government controls roughly 30% of the company.

NIS requested a temporary waiver from the US government to continue operating while negotiating a shift in ownership, Dedovic Handanovic explained.

However, the United States granted only a three-month window to identify new buyers, without authorizing the refinery to remain operational, she added.

Serbia was “not given even a single day for NIS to continue operating,” the minister remarked.

“The American administration has, for the first time, stated clearly and unequivocally that it wants a complete change in the ownership held by Russian shareholders,” Dedovic Handanovic emphasized.

She noted that Belgrade will need to make “some of the most difficult decisions in history” during a government meeting on Sunday, which will include President Aleksandar Vucic and leaders of major state enterprises.

The potential measures involve nationalizing NIS and negotiating possible compensation for the Russian shareholders, she stated.

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