Serbia has a week to decide what measures to take to guarantee its fuel supplies from the Serbian oil company NIS refinery, which is under US sanctions, without proceeding with its nationalization, Serbian President Aleksandar Vucic said at an extraordinary government meeting today.
The meeting was called after the US yesterday gave NIS a three-month deadline to completely divest itself of its Russian stake in its ownership.
Banks have already stopped transactions with NIS and, according to officials, the company's refinery in Pancevo has enough crude oil to operate only until November 25.
“The decision (…) must be made within the next seven days; "The refinery must work," Vucic said today.
He said Serbia wants to avoid nationalization of Russian assets and is ready to make an offer above the market price for the company if the Russian side's negotiations with unnamed Asian and European partners fail.
The sanctioned Russian „Gazprom Neft“ holds 44.9 percent of the capital of NIS, the „Gazprom“ affiliate „Intelligence“ holds another 11.2 percent, the Serbian state has 29.9 percent, and the rest is in the hands of small shareholders.
NIS's Russian owners have informed the U.S. Office of Foreign Assets Control (OFAC) of their desire to transfer ownership of the company to a third party.
Serbian Finance Minister Sinisa Mali warned today that continued sanctions against NIS could undermine Serbia's economic growth, credit rating, and foreign investment in the country.