USA sanctions Serbian oil industry

The USA imposed sanctions against the Russian oil industry on Friday, including sanctions against the Serbian oil industry (NIS).

The US Treasury Department announced that it had taken comprehensive measures to fulfill the G7 commitment to reduce Russian energy revenues. This includes the blockade of two major Russian oil producers.

Sanctions were imposed on the company NIS because of the so-called “secondary risk”, i.e. because of its connection to the Russian company Gazprom.

“Today’s measures also impose sanctions on an unprecedented number of oil tankers, many of which are part of the ‘shadow fleet’, shady Russian oil traders, Russian-based oilfield service providers and officials.” “Russian energy companies,” the Treasury Department said.

“The United States is taking sweeping action against Russia’s primary source of revenue to finance its brutal and illegal war against Ukraine,” Treasury Secretary Janet L. Yellen said.

“This action builds on and reinforces our focus since the beginning of the war on disrupting the Kremlin’s energy revenues, including the G7+ price cap introduced in 2022. With today’s measures, we are increasing the risk of sanctions related to “Russia’s oil trade, including transportation and financial facilitation to support Russian oil exports,” she said.

The UK is also taking action today, joining the Treasury in imposing sanctions on two major Russian oil producers.
“NIS AD Novi Sad is a subsidiary of Gazprom Neft based in Serbia,” the Treasury statement said, among other things.

This Serbian company is now forced to change ownership as it is unable to operate on the global markets.

Following the announcement by the Ministry of Finance, Serbian President Aleksandar Vučić stated that these were “strict and serious sanctions” and that “the complete removal of Russia from the ownership of NIS is necessary”.

“They do not allow the possibility of a Russian capital share of 49 percent or less,” said President Vučić.

He added that Serbia had been given deadlines to complete the transfer of ownership of NIS.

The Serbian president emphasized that NIS can only continue its operations “in a regular way”, while the ownership transformation must begin immediately.

Gazprom Neft has held a stake in NIS since 2022. According to NIS data, Gazprom Neft currently owns 50 percent of the share capital of NIS, the Republic of Serbia owns 29.87 percent of the shares, while Gazprom owns 6.15 percent of the shares.

Gazprom Neft is the third largest oil producer in Russia. It is a subsidiary of Gazprom, which owns around 96% of the shares. The company is registered and headquartered in St. Petersburg after its headquarters were moved from Moscow in 2011. /The Geopost/