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Russian interests have entered negotiations to relinquish control of Serbia’s main oil company NIS, which now faces U.S. sanctions, Serbian Energy Minister Dubravka Djedovic confirmed Tuesday.
After months of delays, the U.S. Treasury's Office of Foreign Assets Control (OFAC) began enforcing sanctions against NIS on Oct. 9 as part of Washington’s efforts to curb Russian energy influence over the Ukraine war.
Djedovic said the Russian shareholders of NIS have formally applied to OFAC to extend the company’s operating license while negotiations with an unnamed third party are underway. “The request indicates that the Russian side is ready to cede control and influence in the NIS company to a third party,” she said in a statement posted on Instagram.
President Aleksandar Vucic later confirmed the talks between “the Russian state and a third party,” telling pro-government broadcaster Pink TV that the two sides were currently negotiating the company’s management structure. He said it was unclear whether Washington would accept a shift in management or demand a full ownership change.
Gazprom Neft, a subsidiary of Russian state energy giant Gazprom, has held a 45% stake in NIS since 2009, recently transferring 11% to another Russian firm called Intelligence. The Serbian state retains just under 30%.
Serbian officials have grown increasingly concerned that continued Russian control over NIS could damage the country’s economy as sanctions tighten. NIS operates Serbia’s main refinery in Pancevo, supplying nearly 80% of the nation’s energy needs.
The company also manages more than 400 petrol stations across Serbia, Bosnia, Bulgaria, and Romania, and employs approximately 13,500 people.
In 2024, NIS reported €3.3 billion ($3.8 billion) in turnover but registered a €153 million loss.
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The development comes as other Eastern European states take steps to reduce reliance on Russian energy firms.
Bulgaria's parliament passed legislation last week to allow state control over a major refinery owned by Russia’s Lukoil. Hungary, meanwhile, secured a one-year exemption from US sanctions to continue importing Russian oil.
Djedovic said Serbia has officially supported the Russian request to OFAC and expects a response this week. “We must find a solution,” she said.
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