Russia Snubs Vucic on Oil, Serbia at Risk of Major Fuel Shortages

Serbian President Aleksandar Vucic reportedly proposed that Serbia temporarily purchase the Russian stake in the national oil company NIS to circumvent U.S. sanctions. The offer, made during a meeting in Belgrade with Gazprom Neft chairman Alexander Dyukov and Russian Deputy Energy Minister Pavel Sorokin, aimed to stabilize the company’s operations until geopolitical conditions improved. However, Russian officials appear reluctant and are reportedly considering selling part of their NIS shares to a third party, potentially even outside Europe.

Vucic Seeks to Secure Energy Supplies

After the talks, Vucic described the meeting as constructive and transparent, emphasizing Serbia’s ongoing energy challenges. “I am satisfied with the openness and sincerity of the discussion,” he said, noting that Serbia’s energy sector remains under pressure but assured citizens that the country will not face a shortage of oil or a major energy crisis. Hungary’s MOL has stepped in to supplement Serbia’s supplies, although the company cannot fully meet the country’s needs. Minister of Foreign Affairs Péter Szijjártó confirmed MOL will gradually increase deliveries to support Serbia.

Sanctions Threaten Serbia’s Oil Supply and Budget

The U.S. imposed sanctions on NIS, a subsidiary of Gazprom Neft, in January, demanding the complete withdrawal of Russian capital. Repeated requests from Serbia for deferrals delayed enforcement, but sanctions officially came into effect in early October. The restrictions immediately affected Serbia’s oil imports via the Croatian pipeline operated by JANAF, which halted deliveries on October 8. Vucic warned that the cessation of supplies would have “serious consequences” for every citizen and that the NIS refinery could operate only until November 1 without new Russian oil.

NIS Holds Strategic Importance in Serbia

NIS is the largest energy company in the Balkans, controlling exploration, production, and refining of oil and gas. The company operates over 400 gas stations across Serbia, Bosnia and Herzegovina, Bulgaria, and Romania, and controls more than half of Serbia’s fuel market. The Serbian government holds a 29.87% stake, while Gazprom Neft owns 44.85% and Gazprom 11.3%. The company contributes up to 9% of the national budget, making its stability crucial for Serbia’s economy and energy security.