US Lifts Sanctions Reprieve for Russian-Controlled Serbian Oil Firm, Allows Refinery to Reopen

In a significant development, the United States has granted a temporary reprieve to the Russian-controlled Petroleum Industry of Serbia (NIS), allowing the company to continue operations until January 23. This move comes after Washington imposed sanctions on NIS in October, forcing the shutdown of Serbia's sole oil refinery in early December. The sanctions, aimed at Russia's energy sector, had a severe impact on Serbia, which relies on the refinery for around 80% of its fuel needs. The country, a key ally of Moscow, had not imposed sanctions on Russia over the Ukraine war. However, the US sanctions demanded the complete exit of Russian shareholders and prevented the refinery from receiving supplies. Serbian Energy Minister Dubravka Djedovic Handanovic announced the reprieve, stating that it would safeguard the country's energy security. The news has been welcomed by President Aleksandar Vucic, who hinted at more 'phenomenal political news' to come. NIS is 45% owned by Gazprom Neft, which has been targeted by US sanctions. The company's parent, Gazprom, transferred its 11.3% stake in NIS to another Russian firm, Intelligence, in September. The Serbian state holds nearly 30% of NIS, while the rest is owned by minority shareholders. Analysts have warned that the refinery's closure could shrink Serbia's economic growth and threaten thousands of jobs. The development comes as Hungarian Prime Minister Viktor Orban was involved in discussions between Vucic and the US State Department, with the Hungarian firm MOL in negotiations to buy the Russian portion of NIS's shares.