US waiving sanctions on Russia-owned refinery – Serbia

The temporary reprieve is set to last until late January, Belgrade has said

Serbia has secured a temporary exemption from US sanctions imposed on the nation’s only oil refinery, which is majority-owned by Russian energy giant Gazprom, Serbian Energy Minister Dubravka Dedovic has announced.

The Petroleum Industry of Serbia (NIS) said early in December it was forced to suspend operations at its only refinery due to a shortage of crude oil, triggered by the sanctions.

The US imposed restrictions on the company early in October after repeatedly postponing the move for months.

NIS is a leading Balkan energy company with a major refinery located in Pancevo, near Belgrade, and a regional network of over 400 petrol stations. Russia’s Gazprom Neft is the largest shareholder with some 45%, with a further 30% held by the Serbian state.

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The Serbian energy minister hailed the waiver as a major achievement that initially “seemed almost impossible” to get. 

“NIS has obtained a license from US OFAC allowing it to continue operations until January 23. This means that the Pancevo refinery will be able to resume operations,” Djedovic stated, praising the country’s diplomats and their relentless efforts to get the crucial facility back online.

The announcement comes after Russia’s Ambassador to Serbia, Aleksandr Botsan-Kharchenko, confirmed that Gazprom Neft has been negotiating the sellout of its shares package to spare NIS from Washington’s sanctions. The diplomat made the remarks in an interview with RIA Novosti on Wednesday. The envoy refused to provide any further detail, stressing that he personally was not participating in the ongoing negotiations.