Russian-Linked Serbian Oil Firm Sanctioned by U.S.
The US refused to postpone sanctions against Russian companies, causing serious consequences for the Serbian oil industry.
The Gaze reports on it, referring to Reuters.
On October 9, the Russian-owned Serbian oil company NIS was hit by US sanctions imposed to isolate Russian assets in Europe.
Russian companies Gazprom Neft and Gazprom's investment arm control a majority stake in NIS, which was the basis for the sanctions, while the Serbian government owns about 30% of the company's shares.
Due to the continuation of sanctions, Croatia suspended crude oil supplies to Serbia via the JANAF pipeline, creating the risk of disruptions at the country's only oil refinery and complicating fuel purchases for the population.
The sanctions also affected payment systems: regular NIS customers were unable to pay with American Express, Mastercard, or Visa cards at approximately 350 gas stations across the country. Airlines, including Air Serbia, that purchase aviation fuel from NIS are now facing higher prices.
It is expected that US sanctions against Russian companies could seriously damage the Serbian economy, as NIS is a key fuel supplier for the country. The company provides about 80% of Serbia's diesel and gasoline needs, as well as more than 90% of its jet fuel and heavy fuel oil.
The sanctions could also negatively impact the financial performance of Air Serbia, which will no longer be able to maintain large fuel reserves and hedge Jet-A costs.
At the same time, Croatia has expressed its willingness to support NIS by offering to buy the company to solve the problem. JANAF, the operator of the pipeline that supplies oil to Serbia, said that the contract with NIS accounts for 30% of the company's revenue, and maintaining the sanctions could lead to a loss of around €18 million by the end of the year.
The Gaze informed earlier that the United States has postponed sanctions against Serbian oil company NIS, owned by Russia's Gazprom Neft, for the sixth time, allowing it to continue operating Serbia's only oil refinery and ensuring stable oil supplies for the entire country.