US sanctions against Serbian oil company NIS come into effect today, the national television RTS reported. The company assured that the priorities remain regular supply to the domestic market and social stability of employees, the television indicated, BTA reported.
In a statement, NIS assured that they have sufficient quantities of crude oil for processing, and gas stations are refueling normally. Payments will be made with local and international cards, in cash and through the “IPS show“ system. The company assured that it will fulfill all obligations to corporate clients and partners.
The sanctions against NIS were imposed on January 10 because of “secondary risk“ from the majority Russian ownership of the company, but their implementation has been postponed eight times - most recently until October 8, the Serbian section of Radio Free Europe (RFE) recalls. Washington's goal is to limit the financing of the war in Ukraine by Russian energy companies.
Yesterday, the Serbian news portal “Nova ekonomija“ wrote that the sanctions would be postponed by a week, citing its own sources, but today it was reported that the sanctions would come into force.
President Aleksandar Vucic said that Belgrade no longer has anything to discuss with the US and will seek a solution with Moscow.
“Europe will support the US sanctions“, he stressed, quoted by Radio Free Europe.
NIS is the only company in Serbia for the exploration, production and refining of oil and gas, RFE recalls. The state owns 29.9 percent of the shares, while the main owner remains “Gazprom Neft“ with 44.9 percent. At the end of September, the St. Petersburg-based company “Intelligence“ (Intelligence), affiliated with “Gazprom“, acquired a stake of 11.3 percent.
In August, NIS reported an operating loss of 3.6 billion dinars (about 30 million euros), partly due to the sanctions, RFE/RL recalls. Experts warn of possible difficulties with crude oil supplies, rising fuel prices, shortages and problems with international payments.
The sanctions could also affect other countries in the region where NIS operates. Serbia remains heavily dependent on Russian energy supplies, which is among the main reasons Belgrade refuses to join Western sanctions against Moscow, Radio Free Europe emphasizes.