The US does not grant the license, Serbia is in chaos: Vučić’s pro-Russian decision puts 12 thousand workers at risk

The US has not yet indicated whether it will grant a license to the Serbian oil industry (NIS). However, a negative decision could cost thousands of jobs if the Serbian state does not immediately take control of the company.

Despite the alarming situation and the relentless rise in fuel and other product prices, President Aleksandar Vučić has given the Russians 50 days to sell their shares in NIS.

Serbia will have to pay at least €1.4 billion for the Russian shares – a considerable financial burden.

The main problem, however, is that NIS and its seven subsidiaries employ over 12,600 people who are already worried about their future. Economist Vladimir Vasic warns Nova.rs that NIS employees could soon find themselves without an income if the state does not place the company under receivership and stabilize its operations.

“In this situation, one to three salaries can be secured in the short term, but it is very difficult to reassure people. After all, they have to live on something,” says Vasic.

In his view, it is most likely that the Serbian state will become the main owner of NIS.

“NIS is the heart of the Serbian energy system. The profit per barrel is between five and 15 dollars, and around 30 million barrels are processed annually. In the worst case scenario, processing alone generates around 150 million dollars in profit. In recent years, NIS has generated profits of between 200 and 800 million euros, while annual turnover reached 3.5 billion euros. The company contributes around two billion euros to the Serbian state budget – and thus has a direct impact on the entire economy,” he emphasizes.

Milan Culibrk, business editor at Radar, explains that employees’ salaries for December and January are secure, but the situation for the rest of the year remains unclear.

“The workers were promised that their salaries would continue to be paid, but the company’s revenues are collapsing. It is incomprehensible why they had to wait another 50 days. The workers cannot invoke the law as long as the management of SHIK (GPN – Gazprom Neft) itself is illegal. A solution must be found in February,” says Culibrk.

He points out that NIS has around two million small shareholders who have been completely forgotten in the debate.

“I don’t think there will be mass layoffs, because even if the state takes over the company, it needs the workers. They won’t hire thousands of party members and ruin the company, as they did with EPS,” he adds.

NIS employees confirm the great uncertainty within the company.

“There is panic, but everyone hopes that the situation will improve soon,” one employee told Nova.rs.

According to the company’s official website, NIS employs over 13,000 people, but data from APR shows that the parent company alone has 5,161 employees.

Subsidiaries, particularly Petrohemija, employ over 1,200 additional workers, making the corporate network one of Serbia’s largest employers. /TheGeoPost