Serbia under russia’s grip over NIS: The U.S. demands belgrade break away from russian oil

Russian President Vladimir Putin said on Friday that Moscow “has ideas” on how to resolve the issue surrounding Serbia’s Oil Industry (NIS), which is currently under U.S. sanctions, confirming that talks with Serbia are still ongoing.

However, the core of the developments remains the direct pressure exerted by the United States to remove Russian capital from Serbia’s energy sector.

“We have ideas on how, in what way, and in which direction we can move forward. Such a dialogue is ongoing with our friends in Serbia, and we hope to find the right solution,” Putin said, according to the Russian news agency TASS.

The United States imposed sanctions on NIS on October 9, citing the fact that Russian companies own a majority stake—56.2 percent—in Serbia’s largest oil company. Washington has been explicit in its position: Russian capital must exit NIS as part of broader measures aimed at limiting Moscow’s revenues from the energy sector.

Speaking during his annual end-of-year press conference, Putin said Russia expects the “friendly leadership of Serbia” to respect existing intergovernmental agreements related to NIS, implying that any action contradicting those agreements would undermine Moscow’s confidence in future investments.

“We have intergovernmental agreements with Serbia regarding any restrictions related to this commercial entity. If these are not respected, the question arises: how can we invest in the country’s economy, and where are the guarantees of security?” Putin said.

Meanwhile, the U.S. sanctions—which began to take effect in October after several delays—have already had tangible consequences. NIS’s oil refinery in Pančevo was shut down in early December due to the lack of a license, while official Belgrade has confirmed that talks are underway with Moscow to change the ownership structure. Serbia has given Russia a deadline until January 15 to find a solution.

Serbian President Aleksandar Vučić stated on December 16 that negotiations are taking place between the Russian side and a major international company, without the direct involvement of the Serbian government. “I believe the negotiations are nearing completion,” Vučić said, without disclosing the name of the company.

So far, neither Washington nor Moscow has released details on the progress of the talks. Information has largely come from Serbian officials, while the primary objective of U.S. sanctions remains unchanged: to strike Russia’s energy sector and prevent further financing of Russia’s war against Ukraine.