Serbian President Aleksandar Vučić said on Thursday the country’s fuel reserves were “better than ever” but warned that U.S. sanctions on oil company NIS and the halt of crude deliveries through Croatia’s JANAF pipeline were creating mounting pressure on the country’s energy system.
Speaking at a government session convened to address the crisis, Vučić said Serbia had been preparing for months for potential U.S. measures targeting Russian ownership in NIS, in which Russia’s Gazprom Neft holds a majority stake. The United States imposed sanctions on the company on Oct. 9, triggering Croatia to stop crude flows through JANAF the same day.
Vučić said Serbia had relied on U.S. extensions that delayed the implementation of sanctions but added that the country is now facing a February deadline to restructure NIS’s ownership so that Russian shareholders exit the company – a process Washington must approve.
Fuel reserves up, but supply routes limited
According to Vučić, Serbia currently has more than 90,000 tonnes of diesel and 50,000 tonnes of gasoline in state and operational reserves, while the army holds an additional 25,000 tonnes of diesel. He said the reserves have allowed the country to avoid fuel shortages during the 37 days since JANAF stopped shipments.
However, he warned that without renewed access to crude, the Pančevo refinery – the backbone of Serbia’s fuel supply – could be forced to halt operations. “Without crude until February, the refinery cannot operate. That means collapse,” he said.
The government, he added, is seeking temporary arrangements with the United States to maintain at least minimal crude inflows. Serbia is also in talks with potential European and Asian partners who might acquire the Russian stake in NIS. If negotiations fail, Vučić said Serbia would be ready to offer a higher purchase price to avoid nationalisation.
Calls for faster decisions
Finance Minister Siniša Mali said sanctions on NIS threaten Serbia’s economic stability, including growth and credit ratings, and argued that the state must be ready to intervene directly to protect the company. Energy Minister Dubravka Đedović Handanović said managing the sector under sanctions had become “impossible” and offered to resign, warning that the country could not endure prolonged loss of crude supplies.
Prime Minister Đuro Macut said the government would hold daily meetings as the situation represents a “first-level crisis.” Parliament speaker Ana Brnabić said legislators were ready to approve a rapid budget rebalancing if needed.
Political and economic balancing act
Vučić criticised Croatia for halting oil transit immediately before sanctions took effect, saying Serbia had been paying JANAF “€50 million annually” in transit fees. He also acknowledged that Serbia must ultimately separate itself from Russian ownership to shield its banking and financial system from secondary sanctions.
Still, the president stressed that Serbia will avoid forced expropriation and will give Russian shareholders the opportunity to sell their stake. “Our policy is not nationalisation,” he said. “We must wait until the last moment and allow them to decide.”
He assured citizens that Serbia has enough fuel and food supplies and that households would not face shortages, though the state would increasingly feel the burden of the restrictions.