The Serbian oil refinery NIS, controlled by Russian shareholders, has halted production due to the lack of crude oil supplies.
Serbian media summarized information about the shutdown at the plant directly from industry and production sources.
In January, the U.S. Office of Foreign Assets Control (OFAC) imposed sanctions on the Russian oil sector, including NIS. Most of the shares belong to Gazprom Neft and Gazprom. The United States granted the plant some reprieve, but the restrictions took effect in October.
Banks halted processing of NIS payments, and the Croatian company JANAF suspended oil deliveries to the refinery.
Since then Serbia has been seeking alternative sources of fuel supply for the winter.
Production situation and its impact on supply
On Monday, the Serbian government said there were sufficient fuel reserves for the domestic market. However, on Tuesday, due to a lack of raw materials, the refinery could not continue operating, meaning it would be unable to produce gasoline, diesel fuel, and aviation fuel.
According to the plant, fuel stocks remain, but they are insufficient for stable production without imports of crude oil.
Who owns NIS and how it affects supply
Gazprom Neft owns 44.9% of NIS shares, Gazprom 11.3%, Serbia 29.9%, and the remainder is divided among small shareholders.
Outlook and regional reaction
Washington seeks a complete exit of the Russian stake from NIS and has given the owners three months to find a buyer for the portion owned by Russia.
According to reports, the Finnish fuel station network Teboil, controlled by Russia’s Lukoil, is preparing to close its outlets due to dwindling fuel stocks amid sanctions.