Pancevo, the nation’s solely oil refinery, now on ‘scorching standby’ as Vucic faces difficult prospect of seizing Russian asset.
Printed On 25 Nov 2025
Serbian President Aleksandar Vucic has warned that the nation’s solely oil refinery will shut down in 4 days if the USA doesn’t raise sanctions that had been imposed over its majority Russian possession in reference to the Ukraine warfare.
Vucic stated on Tuesday that he would give Russia’s Gazprom and Gazprom Neft, which collectively personal 56.2 % of the Petroleum Trade of Serbia (NIS) oil firm, 50 days to promote their stake or the Serbian state would take over operations and make a suggestion to purchase them out.
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For Vucic, who has shut ties to Moscow, the choice of seizing a Russian asset could also be unpalatable, however he stated that his nation had been left in an “more and more tough place” with “no straightforward options” as Washington and the Kremlin clashed.
The US sanctions, which hit NIS in October, have reduce off crude provide to the Pancevo refinery, the one oil refining facility within the nation. “It has not been shut down but, however it’s already operating at a decreased degree in comparison with regular,” stated Vucic.
“Serbia is dealing with main issues … Once you impose sanctions towards Russia and its corporations, they find yourself hitting our nation,” he stated, including that the US sanctions might find yourself affecting provide traces and electrical energy manufacturing in the course of winter.
The Balkan nation does have sufficient gasoline reserves within the quick time period, however a complete shutdown of its solely refinery will halt manufacturing of petrol, diesel and jet gasoline and will damage the nation’s financial system, Vucic stated.
NIS stated in a press release that it started preparations for a shutdown of its Serbian refinery by inserting it on a so-called scorching standby that may permit a restart as soon as crude oil turns into obtainable.
“NIS continues to provide the home market with petroleum merchandise with out interruption, because of beforehand secured shares,” it stated.
The US Treasury Division’s Workplace of Overseas Belongings Management imposed sanctions on Russia’s oil sector in January – together with NIS, which was granted repeated waivers earlier than the sanctions lastly got here into impact in October.
After sanctions hit, banks stopped processing NIS funds, and Croatia’s JANAF pipeline halted crude deliveries to the refinery, forcing the Balkan nation to search for different provides.
The Serbian central financial institution additionally stated in a press release that it will cease all cost transactions for NIS if the corporate’s working licence weren’t prolonged.
Washington is looking for full Russian divestment from NIS, and on November 1,5 it gave the corporate’s homeowners till February 13 to discover a purchaser for the Russian stake.
Gazprom Neft holds 44.9 % of NIS and Gazprom 11.3 % of NIS, in keeping with information company Reuters. Serbia owns 29.9 %, with the remaining held by small shareholders.
Oil firm Gazprom Neft is a subsidiary of power big Gazprom.
