A US license extension has bought Serbia vital time to maintain crude imports and avoid another Pančevo refinery shutdown during ongoing sanctions uncertainty. Officials say the 60 day renewal will influence procurement schedules and pending negotiations over refinery control.
The United States has extended until mid-June the temporary license to operate the Serbian oil company NIS, which is under sanctions. This move allows Serbia to maintain a stable oil import during market restrictions.
According to Serbia’s Minister of Energy, Dubravka Jedovic-Handanovic, RTS confirmed the information.
“We have received good news from the United States. The license to operate issued to NIS has been extended by 60 days, which is very important for more stable planning of crude oil purchases.”
– Dubravka Jedovic-Handanovic
Context of the sanctions and their consequences for Serbia
NIS accounts for about 80% of Serbia’s demand for fuel products, but in December the Pančevo refinery was forced to shut down due to sanctions, the introduction of which had been postponed for a long time, leading to supply disruptions.
The renewal of the license allows Serbia to continue oil imports and avoid the country’s only refinery from being shut down again.
NIS is owned by Gazpromneft – 44.9%, Gazprom – 11.3%, and the Government of Serbia – 29.9%. The Pančevo plant is the country’s only oil refining complex, located near Belgrade, with a capacity of about 4.8 million tonnes per year, enabling it to meet a substantial portion of the Balkan country’s needs.
According to RTS, in January Hungarian MOL and Russian Gazprom Neft agreed on a deal whereby MOL would gain control of Serbia’s only refinery.
On January 9, NIS reported the import of the first batches of oil needed to resume plant operations after the sanctions were lifted.
This license extension allows Serbia to maintain stable oil imports and support energy security under the current restrictions.