Serbia's NIS oil firm gets new sanctions waiver from US - Reuters

Serbia's NIS oil firm gets new sanctions waiver from US - Reuters

Belgrade, April 26, 2025 - Serbian oil company Naftna Industrija Srbije (NIS) has secured a third sanctions waiver from the United States, according to President Aleksandar Vucic. This two-month reprieve, set to expire on June 27, allows NIS to continue operations without interruption [1].

NIS, majority-owned by Russia's Gazprom Neft and Gazprom, operates a single oil refinery in Serbia with an annual capacity of 4.8 million tons. The company covers most of Serbia's crude oil needs, and the imposition of sanctions would significantly impact the country's supply [1].

The U.S. Treasury's Office of Foreign Assets Control (OFAC) initially placed sanctions on Russia's oil sector on January 10, giving Gazprom Neft 45 days to exit ownership of NIS. Serbia's government and NIS have secured two one-month waivers so far to find a solution with the Russian companies [1].

This latest two-month waiver is the first of its kind, providing NIS with additional time to address the situation. "Thank you to our American partners and their understanding for Serbia's position," Vucic stated on Instagram [1].

In February, Gazprom Neft transferred stakes of around 5.15% in NIS to Gazprom in an attempt to ward off sanctions. Gazprom Neft owns 44.85% of NIS, while Gazprom holds 11.3%. The Serbian government owns 29.87%, with small shareholders making up the rest [1].

NIS imports approximately 80% of its crude oil needs through Croatia's pipeline operator Janaf, with the remainder covered by its own crude oil production in Serbia [1].

The sanctions waiver comes amidst a backdrop of volatile crude oil prices. April WTI crude oil prices have rebounded following a fall in the dollar index DXY, which sparked short covering in crude. Additionally, the Trump administration's preparedness to enforce US sanctions on Iranian crude production could further tighten global oil supplies [2].

However, the sanctions waiver for NIS may provide temporary relief, but the long-term impact remains uncertain. The financial stability of NIS and its ability to continue operations without further disruptions will be closely watched by investors and the global oil market.

References:
[1] https://www.marketscreener.com/quote/stock/GAZPROM-6491735/news/Serbia-s-NIS-oil-firm-gets-new-sanctions-waiver-from-US-49728629/
[2] https://www.tradingview.com/news/barchart:7df3d0a23094b:0-crude-prices-rebound-on-dollar-weakness-and-possible-tighter-us-sanctions-on-iran/