Serbia Hopes for Last-Minute Reprieve as U.S. Sanctions Loom Over Oil Refinery

Serbia is facing a potential impact of U.S. sanctions on its sole oil refinery, NIS, as President Aleksandar Vucic expressed hopes for a last-minute solution. The sanctions, targeting Russian interests, could disrupt crude supply unless a deal is reached before the deadline expires.

Serbia is bracing for the impact of U.S. sanctions on its only oil refinery as last-minute negotiations appear unsuccessful. President Aleksandar Vucic conveyed hope for a reprieve while admitting he remains skeptical about a resolution. The sanctions are set to hit the NIS refinery, largely owned by Russia's Gazprom Neft and Gazprom, potentially cutting crude supply.

The current waiver on sanctions is due to expire at midnight on March 28, putting the future of the refinery, which meets most of Serbia's energy needs, in jeopardy. The U.S. Treasury's Office of Foreign Assets Control initially placed sanctions on January 10, giving Gazprom Neft a deadline to exit NIS ownership.

Discussions involving multiple stakeholders, including the United States and Russia, have failed to yield changes in the strategic approach. With Gazprom Neft's reduction in ownership stakes and Croatia's possible acquisition comes a shifting landscape in the regional oil sector, highlighting Serbia's economic and energy vulnerabilities.

(With inputs from agencies.)