Serbia’s only oil refinery, Naftna Industrija Srbije (NIS), faces an imminent shutdown due to US sanctions targeting its majority Russian ownership. This situation poses a significant threat to the country’s energy security.
The sanctions, enforced by the US starting October 9, 2025, target Russia’s energy sector. NIS is 51% owned by Gazprom and Gazprom Neft, placing it directly in the crosshairs of these measures.
NIS supplies approximately 80% of Serbia’s fuel. While the government has stocked reserves and contracted imports for December, experts warn that imports alone cannot sustain the market. Economist Goran Radosavljevic noted that without the refinery, NIS faces bankruptcy.
Negotiations are underway for the Russian owners to sell their stake. President Aleksandar Vučić indicated there are three potential (unnamed) buyers. NIS has filed a request with Washington for a temporary exemption from sanctions to allow time for negotiations, though there has been no response yet.
While a state takeover is an option, President Vučić opposes seizing Russian assets due to his close ties with Moscow. He has instead offered to buy the stake at above-market rates. Russia is exerting pressure on Serbia by offering only short-term gas contracts, a tactic interpreted as an effort to dissuade the Serbian government from seizing the refinery.
