Vucic: No Operating License for Oil Company NIS, Pancevo Refinery May Shut Down 

Pancevo oil refinery (BetaPhoto/Ministry of Mining and Energy of Republic of Serbia/Emilija Jovanovic)

Serbian President Aleksandar Vucic on Dec. 2 said that the US had not issued an operating license to oil and gas company Naftna Industrija Srbije (NIS), which Washington had sanctioned over a Russian controlling stake in the company. 

“Russia does not want to sell its stake in NIS. It is not about money, but rather politics,” Vucic told a news conference after his meeting with the teams responsible for Serbia’s energy stability and security. He also said that there was no indication that the US would extend the license to NIS, adding that Energy Minister Dubravka Djedovic Handanovic would inform NIS that its refinery in Pancevo could cease operations. 

“It will be NIS’ decision when it will shut down the refinery – today or in the coming days,” Vucic said. He noted that 54 days since the sanctions against NIS had taken effect, there had been no problems with fuel supply in Serbia, which, according to him, demonstrated the responsibility of the state and how much money it had invested in oil and oil derivatives reserves.  

Vucic also said that unless an agreement was reached with Russia by Friday, Serbia would start negotiating terms for gas deliveries with other gas suppliers. “Unless we have a contract in place by Friday, we will start negotiating with other suppliers and we will procure gas,” Vucic said. Serbia’s contract with Russia on gas supplies expires late this year. 

Present at the meeting with the teams in charge of Serbia’s energy stability and security were Prime Minister Djuro Macut, Finance Minister Sinisa Mali, Mining and Energy Minister Dubravka Djedovic Handanovic, Defense Minister Bratislav Gasic, energy sector representatives, National Bank of Serbia Governor Jorgovanka Tabakovic, Serbian Army Chief of Staff Milan Mojsilovic, and representatives of other state institutions and companies.