Serbia’s state-controlled oil company, Naftna Industrija Srbije (NIS), has secured sufficient crude oil and fuel reserves to ensure market supply stability as U.S. sanctions are set to take effect on Oct. 1, the company’s CEO said on Friday.
In a letter to employees, NIS CEO Kiril Tjurdenjev addressed concerns about the impending sanctions, which are expected to disrupt the company’s operations. The U.S. Treasury Department issued a special license delaying the sanctions’ implementation until Oct. 1, giving NIS time to prepare.
“Since the sanctions were announced, we have been working on contingency plans to ensure the company’s stable operations and Serbia’s energy security,” Tjurdenjev said. “Our Pancevo refinery is operating normally, with adequate crude oil stocks for processing and sufficient fuel reserves for our storage facilities and fuel stations.”
Tjurdenjev also confirmed that alternative payment solutions have been prepared for NIS fuel stations in case banks and financial institutions halt cooperation due to the sanctions. He assured employees that any banking disruptions would not affect their personal accounts, emphasizing the company’s commitment to mitigating the impact on staff and citizens.
“We will do everything in our power to ensure that employees and Serbian citizens feel the consequences of this situation as little as possible,” he said.
Political Criticism
The sanctions, widely seen as a response to Serbia’s reluctance to align fully with EU foreign and security policies, have sparked criticism from opposition leaders. Pavle Grbovic, head of the Free Citizens Movement, accused the government of failing to act responsibly to protect national interests.
“These sanctions are not a surprise but a direct consequence of the government’s policy of isolation and appeasement toward Moscow,” Grbovic said. “Instead of taking concrete steps to safeguard citizens, the regime has wasted time on propaganda and futile attempts to mask changes in NIS ownership.”
Grbovic warned that Serbia is unprepared for the sanctions and lacks a clear strategy, predicting that citizens and the economy will bear the cost of the government’s inaction. He called for snap elections to steer Serbia toward a “responsible and capable” political course.
Geopolitical Context
Serbian President Aleksandar Vucic, speaking from New York, acknowledged the challenges posed by the sanctions, stating that Serbia had maintained balanced relations with both U.S. and Russian partners but would “pay a high price.” He noted that he had requested a one- or two-month extension of the sanctions deadline but said the situation “won’t be simple.”
NIS, majority-owned by Russia’s Gazprom Neft, recently transferred most of its shares to a St. Petersburg-based entity, a move critics like Grbovic dismiss as a superficial attempt to evade sanctions.
The sanctions are expected to complicate Serbia’s energy sector, a critical component of its economy. However, Tjurdenjev reiterated NIS’s commitment to maintaining operations and ensuring energy stability.