Pancevo oil refinery (BetaPhoto/Ministry of Mining and Energy of Republic of Serbia/Emilija Jovanovic)
The Office of Foreign Assets Control of the United States Department of the Treasury has extended the operating license of Serbia’s Russian-owned oil company Naftna industrija Srbije (NIS) by 60 days, until June 16, Serbian Minister of Mining and Energy Dubravka Djedovic-Handanovic said on April 17.
“The good news from the United States is that NIS's operating license has been extended by 60 days, which is very important for more stable planning of crude oil purchases, securing the operation of the refinery in Pancevo and reliable domestic supply of petroleum products,” Minister Djedovic-Handanovic was quoted as saying by the RTS public broadcaster.
According to the minister, the extension is a positive signal of progress in negotiations on the sale of a majority stake in NIS between Hungary’s MOL and Russia’s Gazprom Neft. She said that for Serbia it was most important that “NIS continues stable operations, protects jobs and contributes to the country’s energy security.”
The energy minister added that the state’s priority for NIS was to be permanently removed from the United States sanctions list so the company could carry out long-term crude oil procurements. Another objective is to increase Serbia’s ownership stake by five percent, which would give it greater control over management and influence in the company. The previous operating license for NIS, which is under U.S. sanctions due to majority Russian ownership of the company, expired on April 17.
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