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The United States has extended a sanctions waiver for Serbia's Russian-owned oil company NIS until Dec. 11, allowing the country's sole oil refinery to continue operating as a new student-backed parliamentary majority prepares to take power following a historic election victory.
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) granted the extension Friday, providing a longer reprieve than the monthly waivers previously issued to the Petroleum Industry of Serbia (NIS).
According to a company statement, the "license enables the maintenance of operations, contracts and other agreements" that are "necessary for secured supply and technical maintenance."
The extension allows NIS to continue importing crude oil and maintaining refinery operations despite U.S. sanctions targeting the company's Russian ownership.
It is the first waiver granted since Sunday's parliamentary election, in which a student-led movement secured an absolute majority, defeating the right-wing party that had governed Serbia for years.
The latest extension comes as negotiations over the sale of Russia's 56% stake in NIS to Hungarian energy company MOL remain unresolved after months of discussions.
Washington initially imposed sanctions on NIS in January 2025 as part of broader restrictions targeting Russia's energy sector, but repeatedly postponed their implementation to allow time for a change in ownership.
The sanctions eventually took effect in October 2025, severely disrupting Serbia's oil industry.
Between October and December that year, NIS was forced to suspend production at its refinery for several weeks because of shortages of crude oil.
Temporary operating licenses have been issued since December 2025, following the announcement of negotiations with MOL, allowing the company to maintain essential operations while discussions over its ownership continue.
Serbia sold a majority stake in NIS to Russia's Gazprom in 2008 for €400 million ($454 million at current exchange rates). The Serbian state currently owns approximately 30% of the company.
The waiver extension comes at a politically significant moment for Serbia, where a student-led movement won an absolute parliamentary majority in Sunday's election, ending years of dominance by the country's long-ruling right-wing party.
The incoming government has yet to outline its foreign policy priorities, leaving questions about how it will navigate relations with Russia, the United States and the European Union.
Despite its longstanding ambition to join the EU, Serbia's outgoing government maintained close ties with Moscow following Russia's invasion of Ukraine in 2022, distinguishing it from most other European governments.
The unresolved ownership of NIS and the threat of renewed U.S. sanctions are expected to pose an early challenge for the next administration.
Ensuring a stable energy supply while managing diplomatic relations with Washington, Moscow and Brussels will be among the key issues facing Serbia's new leadership.
With the latest waiver expiring Dec. 11, the incoming government will face a limited window to address the company's ownership dispute and safeguard the country's refinery operations.
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