Serbia's largest oil company hit by U.S. sanctions

The United States has imposed sanctions on Serbia's largest oil company, NIS, after declining to renew a special license that had previously allowed it to continue operations despite majority Russian ownership. The move is part of Washington's broader effort to curb Russia's global energy revenues, but in Serbia the impact is already being felt.

NIS supplies nearly half of Serbia's oil products, from gasoline to diesel and jet fuel, making it a cornerstone of the country's energy market. The sanctions have immediately disrupted payment systems at NIS petrol stations, with Visa and Mastercard transactions suspended. Customers are now limited to using cash payments, domestic bank cards, or direct transfers.

President Aleksandar Vučić confirmed that Washington had pressured Belgrade to take control of NIS in exchange for a moratorium on sanctions, but described nationalization as a last resort. 

"They would have said 'No problem, here's another month, here's another two, just give us your word that you're going to go into nationalization,'" Vučić explained. "I said that's always an option, but it will be my last option."

In the meantime, Serbia is racing to secure refined oil products from abroad to make up for the potential shutdown of the Pančevo refinery, the country's only facility of its kind. Current crude supplies at the plant will last only until November 1 unless new shipments can be arranged.

The challenge lies in Europe's limited transport infrastructure, which lacks the capacity to replace the volumes traditionally processed domestically. Other fuel importers and distributors in Serbia are stepping up to cover demand, but their efforts may fall short. 

"Imports will certainly double, but it is certainly not enough to satisfy the complete cessation of deliveries from NIS. That cannot replace anything," warned Tomislav Mićović, Secretary General of the Association of Oil Companies of Serbia.

For now, the government has moved to reassure the public, noting that all reserve storage tanks are full and should cover domestic demand until the end of the year. Historically, imports accounted for between 20 and 40 percent of Serbia's oil derivatives. That figure is now set to rise sharply as NIS's dominant role diminishes under sanctions.

The coming months will test whether Serbia's stockpiles and increased imports can prevent fuel shortages or sharp price hikes during the winter. For a country where NIS contributes roughly nine percent of GDP, the sanctions are more than just a geopolitical maneuver – they threaten to reshape Serbia's energy security.