site.btaSerbian Oil Refinery in Quiet Mode until December 2, Awaits Sanctions Waiver, Energy Minister Says

Serbia's oil refinery, owned and operated by US-sanctioned oil and gas producer NIS, will keep running in quiet mode until December 2, awaiting a decision on a potential sanctions waiver for the Russian-controlled company, Energy Minister Dubravka Djedovic Handanovic said, state broadcaster RTS reported on Friday.

Handanovic’s statement followed her meeting with members of the Association of Oil Companies of Serbia to discuss the situation on the oil derivatives market.

Earlier this week, Serbian President Aleksandar Vucic said that over the weekend, the refinery, located in the town of Pancevo near the Serbian capital Belgrade, will come out of the so-called quiet mode and will have to be closed. Since November 25, the Pancevo refinery near Belgrade has been operating in quiet mode and will be shut down within hours if NIS does not receive an operating licence.

On Thursday, Vucic said he had received assurances from the US Treasury Department that NIS would receive a license, but the State Department is also expected to make a decision.

In early January, the US announced that due to the war in Ukraine and "secondary risk", it would impose sanctions on Serbia's only oil company, NIS, which is majority-owned by Russian oil giant Gazprom. Washington demanded the complete withdrawal of Russian capital from the company, but Russia announced just a week ago that it was ready to sell its stake. A few days ago, Serbian President Vucic announced that Russia has been given 50 days to sell its majority stake in NIS, noting that there are at least three potential buyers, although he did not name them.

On Thursday, Hungarian Prime Minister Viktor Orban confirmed that the Hungarian company MOL is a candidate to purchase a stake in the Serbian oil company NIS, but did not specify the size of the stake.

The Serbian state owns 29.9% of NIS shares, while Gazprom remains the majority shareholder with 44.9%. At the end of September, Gazprom's affiliate company Intelligence, based in St. Petersburg, acquired an 11.3% stake in the parent company.

NIS was placed under US sanctions on January 10, which came into force on October 9 after being postponed eight times.

On Thursday and Friday, the Serbian National Assembly debated the draft budget law and an amendment, which provides for an additional RSD 164 billion (approximately EUR 1.4 billion) for the acquisition of "financial assets".

According to the President of Serbia’s National Assembly, Ana Brnabic, the amendment to the 2026 draft budget has been proposed to provide the government with the ability to take control of the company and create a legal basis for the potential nationalization of NIS.

Serbian President Aleksandar Vucic said that Serbia would offer the highest price to "our Russian friends" for a majority stake in NIS if the deal with the other candidates fell through.