The United States has introduced sanctions against Serbia’s main oil supplier, which is controlled by Russia, the company said on Thursday. Serbia’s president said this could have “unforeseeable” consequences for the Balkan country.
Serbia depends almost entirely on Russian gas and oil supplies, which it receives mainly through pipelines in Croatia and other neighboring states. The gas is then distributed by Petroleum Industry of Serbia (NIS), which is majority-owned by Russia’s state oil monopoly Gazprom Neft.
The sanctions could deprive Serbia of gasoline and heating oil ahead of the winter months. Populist President Aleksandar Vucic is already under pressure at home from 11 months of anti-government protests.
Vucic said Serbia will continue talks with both American and Russian officials, adding that people shouldn’t panic and the government is prepared for the situation.
Gazprom Neft also owns Serbia’s only oil refinery.
NIS said Thursday it had failed to secure another postponement of the U.S. sanctions, which could jeopardize its efforts to secure oil and gas deliveries in a longer term.
“The special license from the U.S. Department of the Treasury, which enables unhindered operational business, has not yet been extended,” NIS said in a statement. It added that it has stored enough supplies to keep the operation moving for customers for a longer while.
The U.S. Treasury’s Office of Foreign Assets Control originally placed sanctions on Russia’s oil sector on Jan. 10 and gave Gazprom Neft a deadline to exit ownership of NIS, which it didn’t do.
Posted by John3262005