Serbia’s Russian-owned oil company NIS has sought a special license from the U. S. Treasury’s Office of Foreign Assets Control (OFAC) to continue operations amid sanctions issues. OFAC’s sanctions on Russia’s oil sector began in January but were delayed for NIS until they took effect on October 8. NIS stated that they submitted a request for a new license to allow ongoing operations while negotiations for a lasting solution continue. The U. S. wants complete Russian divestment from NIS and has given owners three months to find a buyer.
Currently, banks have stopped processing NIS payments, and the pipeline from Croatia has ceased crude oil delivery. Officials warn that the refinery may not operate beyond November 25 without new supplies. The Serbian government has approved imports for state reserves, while the central bank governor noted OFAC’s warning about potential secondary sanctions due to ongoing cooperation with NIS. Russian owners of NIS have expressed willingness to relinquish control, and the Serbian president indicated a readiness to offer more than market value for NIS if discussions with potential buyers fail.
With information from Reuters
