Economist: No Price Can Be Set for NIS’s Nationalization, Recompense Only in Court

Oil and gas company NIS (BETAPHOTO/EMIL VAS)

Should the Serbian state decide to nationalize oil and gas multinational Naftna Industrija Srbije (NIS) – a solution hinted at by the U.S., which levied sanctions against the company over its majority Russian ownership – no price can be put on the move but the dissatisfied party may seek recompense in court, economist Bozo Draskovic told BETA on Oct. 30.

Commenting on possible solutions for enabling NIS’s continued operation, Draskovic said that, in the event of nationalization and majority stakeholder Gazprom Neft’s displeasure, a formal lawsuit could be led before a designated Serbian court or, if the contract so states, an international one.

“If the case goes to court, the nationalizing party won’t be the one determining the value of the nationalized property but rather this will be done by independent experts,” the economist explained.

Draskovic added that any owner, “be they Russian, English, Chinese or American,” will not allow the matter to pass without appropriate compensation and will provide a bill that includes loss of income as well.

“In the debate regarding NIS, i.e. between Russia and America, Serbia is not an active but a passive actor. This is the result of a foolish decision made by ‘the bunch’ in power in 2008, when NIS was sold to Russia’s Gazprom [Neft]. The current regime is also to blame, since it had to know, once war broke out in Ukraine, that problems would arise. Something could have been done to prevent this instead of waiting until past the last minute,” Draskovic stated.

The economist concluded by underlining that the issue is not merely economic but also geo-political and strategic, because the U.S. will not allow Russia to remain an independent seller unless the two superpowers reach a political agreement.