Serbia’s oil refinery, owned by Russia’s NIS, will shut down in four days if the U. S. does not lift sanctions on the project, which would threaten fuel supplies during winter, according to President Aleksandar Vucic. While there are enough fuel reserves for the short term, closing the refinery will stop production of gasoline, diesel, and jet fuel, negatively impacting the economy. Vucic announced that he would give the Russian owners 50 days to sell their stake in NIS, or the Serbian government would take control and make a buyout offer. He criticized the sanctions against Russia, stating they harm Serbia as well.
NIS has put its refinery in a “hot standby” state, preparing for a possible shutdown but maintaining supply through existing stock. The U. S. imposed sanctions on Russia’s oil sector in January, affecting NIS, which had received temporary waivers until the sanctions fully took effect in October. This led to banks ceasing payments for NIS, and Croatia’s pipeline stopping crude deliveries, pushing Serbia to seek alternative supplies. The Serbian government confirmed it has sufficient fuel reserves, with NIS holding 55,000 tons of diesel and 50,000 tons of gasoline, which should last until late December. Serbia relies heavily on imported Russian gas via the Turk Stream pipeline.
With information from Reuters
