Serbian President Aleksandar Vucic said in an interview with local television that the Naftna Industrija Srbije plant will face sanctions from the US and UK as early as next month.
“We confirm that the US will impose the most severe sanctions on Naftna Industrija Srbije,” President Vucic told Belgrade-based Informer TV.
The leader said that Serbia "has not yet received an official document, but in the next few days the US will announce full sanctions" on the Gazprom plant and the UK will also join these sanctions. The Serbian president also informed that the sanctions could come into effect from January 1, 2025.
Gazprom Neft bought a majority stake in Serbia's largest oil refinery in 2008, later increasing its ownership to 56.15%. In 2022, Gazprom Neft transferred 6.15% of Naftna Industrija Srbije to its parent company amid Western sanctions against Russia following the conflict in Ukraine. The Serbian state has a minimum stake of just under 30% in the refinery.
"This seems to be one of the worst news in the last few years," Vucic said, revealing that the Serbian state could take over an unspecified number of shares in Naftna Industrija Srbije to change its ownership structure to escape sanctions.
Serbia relies heavily on gas from Gazprom, despite efforts to diversify its supply sources away from Russia. Serbia is currently negotiating with Russia to extend its gas supply contract when the current contract expires in March 2025.
Naftna Industrija Srbije's main refinery is in Pancevo, just east of Belgrade. The plant has relied on crude imports via a pipeline in neighboring Croatia. With tighter sanctions expected to make this pipeline unavailable to Naftna Industrija Srbije, Serbia has planned to access crude supplies via the Druzhba pipeline via neighboring Hungary from 2026.
