Russian Investors in Serbian Oil Firm Seek Exit Amid U.S. Sanctions Enforcement

Russian stakeholders involved in Serbia’s state-affiliated oil company NIS are currently negotiating their exit from the firm in response to newly imposed U.S. sanctions, as stated by Serbia’s energy minister on Tuesday.

The U.S. Treasury started implementing sanctions against NIS on October 9, following multiple delays since January. This action forms part of a wider initiative by U.S. President Donald Trump to exert pressure on Russia’s energy sector in light of the ongoing conflict in Ukraine.

NIS becomes the most recent energy enterprise in Eastern Europe looking for new ownership due to the pressure of sanctions. Last week, Bulgaria legislated to bring a significant Lukoil-operated refinery under state control, while Hungary obtained a one-year exemption from U.S. sanctions to continue importing Russian oil.

Since 2009, Gazprom Neft and its parent company Gazprom have maintained nearly a 45% stake in NIS. Recently, Gazprom transferred approximately 11% of its share to another Russian entity, Intelligence. The Serbian government holds just under a 30% stake in the company.

Officials in Belgrade have cautioned that ongoing Russian ownership could jeopardize the nation’s energy security and overall economy.

Energy Minister Dubravka Djedovic revealed that the Russian proprietors have requested an extension for NIS’s operating license from the Treasury’s Office of Foreign Assets Control (OFAC) while they engage in talks with an undisclosed third party. She noted that this request “suggests the Russian side is willing to relinquish control and influence” over the company to a “third party.”

NIS operates Serbia’s primary refinery located in Pancevo, which caters to about 80% of the national demand. The Serbian government has officially supported the Russian appeal, and Djedovic indicated that OFAC might reach a decision this week. “We need to find a solution,” she remarked.

The company employs roughly 13,500 individuals and manages over 400 fueling stations throughout Serbia, in addition to around 80 sites in Bosnia, Bulgaria, and Romania. In 2024, NIS reported revenues of approximately 3.3 billion euros ($3.8 billion) but also recorded a loss of 153 million euros for the same year.