Will Serbia take over a Russian petrochemical company? The US demands a change of ownership of NIS

Serbian President Aleksandar Vucic expressed on Sunday his readiness to buy the Serbian Oil Industry (NIS) covered by US sanctions from the Russians. During the government meeting, the president emphasized that he wanted to avoid nationalization of the company at all costs.

At a meeting of the Serbian government, it was announced that the final decision on NIS must be made within seven days to enable the company and its refinery to operate.

– I want to avoid nationalization and confiscation at all costs. I want to exhaust all possibilities first, said Vucic. He added that the Russians are talking to Asian and European partners about selling their shares in NIS.

The president said that Belgrade is ready to offer a higher price if necessary. – We can even overpay, but I don't want to steal anything from anyone. NIS and the refinery must function, he added.

After the flow of oil to Serbia was blocked by US sanctions against the NIS, Serbian Finance Minister Sinisha Mali said that Serbia shows sufficient understanding for its Russian friends. Now, as he noted on Sunday, it is time for Serbia to think about itself and take matters into its own hands.

– The American administration wants a complete change in the ownership of NIS and demands the complete withdrawal of Russian shares in the company, Dubravka Djedović Handanović said on Saturday.

According to Serbian calculations, crude oil in the country's only refinery will be available until November 25.

The United States included NIS on the list of companies subject to sanctions in order, as it was announced, to prevent the financing of the war in Ukraine with money from Russian energy companies. The restrictions entered into force, after being postponed several times, in early October.

Since 2008, the majority shareholders in NIS are Gazprom and Gazprom Neft, the oil subsidiary of Gazprom, which owns approximately 96 percent. his shares. At that time, Gazprom Neft owned 50 percent. shares in NIS, the Republic of Serbia 29.87 percent, and Gazprom 6.15 percent. The remaining shares belonged to citizens, current and former employees and other minority shareholders.

Although the ownership structure of NIS has changed several times recently, the concern is still mostly in the hands of Russian companies. Gazprom withdrew from NIS in September, and its shares were taken over by another company managed by it: Intelligence from St. Petersburg – according to data from the Belgrade Stock Exchange.

NIS is the only company in Serbia engaged in the exploration, production and processing of crude oil and natural gas. It is also one of the most profitable companies in the country, generating revenues of EUR 3.3 billion, which is 4.5 percent. Serbia's GDP and net profit of EUR 375 million – according to data from 2023. The company annually pays approximately EUR 2 billion in taxes and fees to the state budget.

NIS currently controls 80 percent. domestic fuel market and 50 percent retail sales through a network of 334 gas stations operating under the NIS and Gazprom banners.

Jakub Bawołek (PAP)

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