Belgrade, Serbia – Serbia has just seven days to secure the operation of the country’s only oil refinery, owned by Russian energy companies, without resorting to nationalisation, President Aleksandar Vucic warned on Sunday. The urgent appeal comes amid mounting international pressure and potential fuel shortages that could impact the nation’s economy.
The NIS refinery, located in Novi Sad and majority-owned by Gazprom Neft and Gazprom, is at the center of a geopolitical and financial standoff. Washington is pressing for complete Russian divestment from NIS, which operates Serbia’s sole refinery, and issued a three-month deadline on Saturday for the Russian owners to find a suitable buyer.
Vucic Emphasizes Need for Immediate Action
Speaking during a government session broadcast live on state television, President Vucic stressed the urgency of the situation:
“The decision must be made over the next seven days; the refinery must operate. We want to avoid nationalising Russian assets, but we are ready to make an above-market offer if negotiations fail.”
Vucic reiterated that Serbia’s priority is to maintain fuel supplies and prevent any disruption to energy security for Serbian households and businesses.
Ownership Structure and International Pressure
Currently, NIS ownership is split as follows:
- Gazprom Neft: 44.9%
- Gazprom: 11.3%
- Serbia: 29.9%
- Small shareholders: Remaining stake
The Russian companies have indicated to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) their willingness to transfer control to a third party if needed. However, banks have already frozen NIS transactions, and officials warn that the refinery only has enough crude oil reserves to operate until November 25, 2025.
Economic Concerns
Finance Minister Sinisa Mali cautioned that prolonged sanctions or operational disruptions at NIS could have wide-reaching economic consequences, including:
- Undermining Serbia’s economic growth
- Lowering credit ratings
- Reducing foreign investment inflows
Vucic also indicated that Serbia is exploring negotiations with Asian and European partners to ensure continuity of refinery operations if Russian divestment efforts stall.
Next Steps for Serbia and NIS
The coming week is critical for Serbia to secure NIS operations. Potential scenarios include:
- Negotiated sale to third-party investors
- Above-market acquisition by Serbia if Russian negotiations fail
- Avoidance of full nationalisation, which could provoke diplomatic tensions
The outcome will have implications for Serbia’s energy security, regional fuel markets, and broader international relations, particularly amid ongoing sanctions on Russian energy companies.
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