The Russian owners of Serbia’s only refinery Naftna Industrija Srbije (NIS) have requested an extension of a U.S. license to operate as they negotiate to cede control of the facility to a third party, Serbian Energy Minister Dubravka Dedovic Handanovic said on Tuesday.
Gazprom Neft and Gazprom affiliates hold a majority stake in NIS, with the Serbian state owning the remaining 29.9%.
The U.S. has waived the sanctions against NIS several times since it sanctioned Russia’s oil industry in January this year. The sanctions on the Russia-owned refinery in Serbia came into effect in early October as the last waiver expired.
Now, the Russian owners of NIS have applied to the U.S. Office of Foreign Assets Control (OFAC), requesting an extension of the operating license for the refinery, based on negotiations with a third party, Dedovic Handanovic wrote on Instagram today.
“The petition states that the Russian side is ready to cede control and influence over the NIS company to a third party,” the Serbian energy minister added.
“The state of Serbia supported this request. OFAC has already responded with certain comments and we hope it will announce its position within the week,” Dedovic Handanovic said.
“Time is running out and a solution must be found, but citizens must not suffer and run out of fuel. That will not and must not happen.”
Since the last waiver expired on October 8, banks have stopped processing NIS-related payments and Croatia’s JANAF pipeline has halted deliveries of crude oil to the refinery. The JANAF pipeline from Croatia had been Serbia’s primary supply line for Russian and Kazakh crude since 2022.
Without new supply of crude, the NIS refinery can operate only until November 25, according to Serbian officials.
NIS operates Serbia’s only refinery in Pancevo, which supplies about 80% of Serbia’s gasoline and diesel and more than 90% of jet fuel and heavy fuel oil.
By Charles Kennedy for Oilprice.com
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