Washington imposed sanctions on the Balkan country’s oil refinery majority-owned by Gazprom
The US has refused to let Serbia’s only oil refinery resume operations unless the Russian co-owners give up their stakes, Serbian Energy Minister Dubravka Dedovic Handanovic said on Saturday.
The Petroleum Industry of Serbia (NIS), which runs the refinery, was hit with US sanctions last month. Banks have since stopped processing transactions, and Croatia’s JANAF pipeline, Serbia’s key crude oil supply route, has halted deliveries. Earlier, Reuters reported that the refinery can operate only until November 25 without new supplies.
Russian energy giants Gazprom and Gazprom Neft together own 56% of NIS, while the Serbian government owns around 30%.
NIS petitioned the US government for a temporary waiver that would allow the company to continue operating while it negotiates a change in ownership, Dedovic Handanovic said. The US granted only a three-month period to find new buyers, not permission for the refinery to keep running, she added.
Serbia was “not given even a single day for NIS to continue operating,” the minister said. “The American administration has, for the first time, stated clearly and unequivocally that it wants a complete change in the ownership held by Russian shareholders,” Dedovic Handanovic stated.
She said Belgrade would have to make “some of the most difficult decisions in history” at a government meeting Sunday that will include President Aleksandar Vucic and heads of major state companies. The options include nationalizing NIS and negotiating possible compensation for the Russian shareholders, she said.
The US and the EU have urged Serbia to cut its historically close ties with Russia, which Belgrade has so far resisted. The US also aims to push Russia from the European market, with Energy Secretary Chris Wright saying in September that Washington was prepared to “displace” the importation of Russian oil and gas.
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