Editor’s Note
This article reports on the announced closure of Serbia’s main oil refinery, operated by a Russian company, due to its inability to secure a required US license under current sanctions.
Serbian President Aleksandar Vucic stated on Tuesday that the country’s main oil refinery, operated by Russian company Gazprom Neft through Petroleum Industry of Serbia (NIS), failed to obtain the necessary US license to continue operations under the sanctions regime and will now close.
Speaking after a meeting in Belgrade with officials responsible for Serbia’s energy stability and security, Vucic discussed the imminent closure of the refinery, which has seen several months of extensions since it was placed on the sanctions list on January 10, alongside Gazprom Neft, one of Russia’s leading oil producers and exporters.
Vucic said Serbia had officially requested a license from the United States to allow operations to continue, but this request was not approved.
Vucic added that existing reserves would cover the refinery’s needs until the end of the year and indicated that Serbia hopes to finalize a new gas agreement with Russia by the end of the week.
If not, he said, negotiations to find other arrangements will begin on Monday.
The US Treasury Department announced on January 10 that it had taken significant steps to help reduce Russia’s energy revenues, in line with G7 commitments, by adding Gazprom Neft, Surgutneftegas, and their subsidiaries to its sanctions list. Among them was NIS.
Belgrade had previously requested extensions, stating it needed more time to implement the changes demanded by the United States. Serbia obtained a nearly one-year extension before the current deadline.
In November, Serbian President Aleksandar Vucic said this decision could have significant economic and financial consequences.
Vucic warned that the risk went beyond fuel supply, highlighting the possibility of US secondary sanctions against the National Bank of Serbia and the country’s commercial lenders.
The president warned that the shutdown would disrupt supply chains, food distribution, and even electricity production.
