(MENAFN) Serbia's only oil refinery risks imminent closure unless Washington extends sanctions relief within 48 hours, President Aleksandar Vucic warned Tuesday, triggering fears of a nationwide fuel crisis.

Naftna Industrija Srbije (NIS), controlled by Russia's Gazprom Neft, has already curtailed production and could cease all operations by Thursday without approval from the U.S. Office of Foreign Assets Control (OFAC), Vucic disclosed. Restarting the facility would demand a minimum 20-day timeline, he noted.

The refinery submitted its most recent license application to OFAC on November 18, following the full enforcement of American sanctions against the company in October.

Vucic also sounded alarms over cascading financial consequences, revealing that Serbia's central bank and private financial institutions have received warnings about potential secondary sanctions exposure due to NIS's Russian ownership ties—a scenario he characterized as a threat to the nation's entire banking infrastructure.

Serbian authorities asserted Monday that strategic petroleum stockpiles would prevent supply disruptions. Yet an extended closure would eliminate the country's domestic fuel production capabilities entirely.

Gazprom Neft maintains a 44.85 percent stake in NIS, while the Serbian government controls approximately 30 percent.

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