Reuters reported that Serbia's NIS has just officially requested a third US sanctions exemption, in the context that the current exemption will expire on April 28.
If it does not continue to ease, the NIS risks losing most of its crude oil supply, which is seen as a "lack" in operating Serbia's only refinery.
The NIS operates a refinery with a capacity of up to 4.8 million tons/year, meeting most of domestic fuel demand. The blockade of Russian supply - due to US sanctions imposed on Moscow-related entities - could put Serbia at risk of widespread energy disruption.
In a statement posted on the website on April 23, NIS affirmed: "The goal of this proposal is for the company to continue operating normally after April 28". Previously, this enterprise had applied for and was granted an exemption twice: the first period from February 27 to March 28, the second period lasted until the end of April.
Notably, on March 14, the NIS also submitted a petition to the US Treasury Department requesting it to be removed from the sanctions list.
Currently, Gazprom Neft holds 44.85% of NIS shares, while Gazprom holds 11.3%. Meanwhile, the Serbian government owns nearly 30%, the rest are small shareholders.
In late February, in order to ease pressure from sanctions, Gazprom Neft transferred 5.15% of its shares to Gazprom - a move believed to "minimize risks", avoiding a controlling stake-taker being targeted by the US.
According to the company's data, about 80% of NIS' crude oil supply is currently imported through Janaf's (Croatia) oil pipeline system. The rest is exploited domestically.
However, if sanctions are tightened, the ability to continue using the Janaf pipeline could also be affected, due to pressure from the US and EU.
In the complex geopolitical context and the "unstoppable" relationship between Serbia and the West, the story of the NIS is not only an economic problem but also an energy match between Russia, the US and the Balkan region.
Serbia, with its strategic transit location, has once again been dragged into a spiral of competition between the powers, this time through... a refinery.
