State Department on sanctions against NIS: An opportunity for Serbia to achieve greater energy independence

“US President Donald Trump has made it clear that European partners must stop using Russian energy sources because this prolongs the war in Ukraine,” the State Department said in response to a query from Nova S about US sanctions against the Serbian oil industry, which took effect on October 9.

The Serbian oil industry has been majority-owned by Russia since 2008. The largest shareholder is Gazprom Neft with 44.9 percent, the Serbian state has 29.9 percent, and the remainder is held by small shareholders.

The State Department’s response to Novi S states that the US sanctioned NIS because it is owned or controlled by the Russian oil company Gazprom Neft.

“In the spirit of cooperation with Serbia, we have delayed the imposition of sanctions for nearly nine months. We are in close contact with our Serbian partners on this issue and appreciate their coordination with us. The sanctions are directed against Russia, not Serbia. We encourage Serbia to take steps to find a solution to regain control over its key energy resources. This represents an opportunity for Serbia to achieve greater energy independence and a stronger economic future,” the State Department’s response emphasized.

It was also stated that the removal of Russian control over NIS would increase Serbia’s energy security and promote investment and prosperity throughout the region. The response stated that the United States remains committed to partnering with Serbia in diversifying its energy sector, which, as stated, will contribute to Serbia’s economic strengthening.

“As Secretary Rubio has said, we are committed to a mutually beneficial relationship with Serbia that promotes economic growth and benefits the citizens of both countries. We deeply appreciate President Vučić’s similar commitment,” concluded the State Department’s response to a question about US sanctions against the Serbian oil industry, which have come into force.

Serbian President Aleksandar Vučić said today that US sanctions against the Serbian oil industry will have serious consequences for Serbia. He explained that without additional oil supplies, the NIS refinery will be able to operate until November 1. He also said that he expects Serbia to have no problems with fuel supplies until the new year.

“This is bad news for our country, which was to be expected. This is not just about the operation of one company, these are extremely serious consequences for our entire country, in political, economic, social, and every other sense,” Vučić said in an extraordinary address after the sanctions were imposed.

The Serbian oil industry (NIS) was added to the US sanctions list on January 10 due to the so-called secondary risk, i.e., majority Russian ownership. The embargo is intended to prevent the financing of the war in Ukraine with money provided by Russian energy companies.

/www.danas.rs