December 03, 2025 03:51 PM GMT+03:00
Serbian President Aleksandar Vucic said Tuesday that the country’s main oil refinery, operated by Russia’s Gazprom Neft through the Petroleum Industry of Serbia (NIS), will shut down after failing to secure a US license needed to continue operating under sanctions.
Pre Shutdown Procedures
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Due to lack of crude oil for refining, which occurred as a consequence of the sanctions imposed by the US Department of the Treasury against the NIS company, the Pančevo Oil Refinery is starting preparations for suspending operations. In the first phase, the plants were introduced into warm circulation, and the entire process is carried out in accordance with the laws of the Republic of Serbia, the company’s internal rules, and the strictest environmental standards, as well as occupational safety and health rules
Activities at the Pančevo Oil Refinery during the warm circulation period will be organized in such a way that the refinery plants are ready to restart as soon as conditions allow, that is, as soon as information about the availability of crude oil is received.
No US license for NIS, Russia refuses to sell stake
Aleksandar Vučić; Photo: Dimitrije Goll /Presidency of Serbia
BELGRADE – Serbian President Aleksandar Vučić stated today that the United States has not yet issued a decision on extending the license for the operations of the Serbian Petroleum Company (NIS), which has been under US sanctions since 9 October due to its majority Russian ownership.
Without a license extension, the Pančevo oil refinery operated by NIS, which supplies most of the Serbian market, will face a complete shutdown because of a lack of crude oil for processing.
NIS is still awaiting a response from US authorities to its request to continue operations while negotiations continue over the purchase of the Russian stake in the company.
“Russia does not want to sell its stake in NIS. It’s not about money, it’s about politics,” Vučić said at press conference following a meeting with teams responsible for the country’s energy stability and security.
Vučić said that Energy Minister Dubravka Đedović Handanović would inform NIS of the situation, and that authorization had been given for the Pancevo refinery to halt operations.
“NIS will decide whether the refinery stops today or in the coming days,” Vučić stated.
At 25 November, Serbian Government adopted a decision giving Russia 50 days to find a buyer for its stake, after which the state will impose its own management at NIS and offer the Russian side “the highest possible price” for the company.
Neither the US nor Russia has publicly released information on the state of negotiations. Citizens have been receiving updates primarily from Serbian officials- most of all from President Aleksandar Vučić.