The US introduces sanctions against the company owned by Russia operating the only oil refinery in Serbia. President Vucic hopes for “a miracle”

Washington will impose sanctions from October 1 for Nis in Serbia, oil company where Russia is a majority shareholder and operating the only oil refinery in the Balkan country, according to the announcement made by President Aleksandar Vucic, reports Reuters.

On January 10, the Office for the Control of Foreign Assets of the US Treasury imposed sanctions on the Russian oil sector and granted Gazprom NEFT 45 days to withdraw from NIS. However, since then the US has postponed the entry into force of measures six times – most recently, in August, until September 26.

“Starting October 1, we will have sanctions against NIS,” said Serbian President Aleksandar Vucic, in press statements in New York, where he participated in the UN General Assembly.

NIS – in which Gazprom Neft (sibn.mm) holds a 44.9% stake, the Gazp.mm unit of 11.3% and the Serbian government of 29.9% – operates the only refinery in Serbia, in the city of Pancevo, right next to Belgrade.

Gazprom Neft transferred a stake of about 5.15% of NIS to Gazprom on February 26, trying to avoid sanctions.

“Since banks will not be allowed to collaborate with NIS, there will be difficulties in paying salaries and all other aspects. But let's wait and see until October 1, maybe a miracle will happen,” said Vucic.

The unit in Pancevo has an annual capacity of 4.8 million tonnes and covers most of the need for Serbia, and the sanctions could endanger its oil supply through Croatian Janaf.