US Sanctions Pressure Serbia to Reduce Reliance on Russian Oil
BELGRADE – Serbia is moving to reduce its dependence on Russian oil as Western sanctions begin to impact energy transactions, possibly reshaping the country’s energy sector and raising concerns about fuel availability. The Serbian government reportedly plans to repurchase shares of Naftna Industrija Srbije (NIS), the country’s dominant oil and gas company, currently majority-owned by Russian state-owned firms, with a possible future resale contingent on an improvement in Russia‘s international standing.
The move comes as Serbian citizens already experience the initial consequences of sanctions imposed on Russia following its invasion of Ukraine. Visa, Mastercard, and American Express transactions are now blocked at NIS and Gazprom-branded gas stations within Serbia, signaling a tangible disruption to everyday life. While Serbia currently avoids an energy bottleneck, anxieties are growing among the population, recalling the fuel shortages experienced during the conflicts of the 1990s.
NIS, a crucial component of Serbia’s energy infrastructure, is currently majority-owned by Russian companies.The planned serbian state buyback aims to shift ownership away from Russian control, though officials have indicated a willingness to revisit the arrangement should geopolitical conditions change. The exact timeline and financial details of the share repurchase remain undisclosed.
The situation underscores Serbia’s complex relationship with Russia, a long-standing political and economic partner. Despite formally condemning russia’s aggression in Ukraine at the united Nations, Belgrade has refrained from joining Western sanctions, a position that has drawn criticism from the United States and European union. The disruption of payment processing at Russian-owned gas stations demonstrates the indirect impact of sanctions, even without direct Serbian participation.