The United States is preparing to impose sanctions on Serbia’s largest oil and gas company, NIS, due to its ties to Russian energy giants. The potential sanctions are expected to strain Serbia’s relationships with both Russia and Western countries.
Russian Control Over NIS Draws Sanctions Threat
Serbian President Aleksandar Vučić announced that the US intends to sanction Naftna Industrija Srbije (NIS) because of its significant Russian ownership. NIS is majority-owned by Gazprom and its subsidiary Gazprom Neft, with Gazprom holding 6.15% and Gazprom Neft controlling 50%. The Serbian government and smaller shareholders own the remaining shares.
In an interview with Informer TV, Vučić said, “We received confirmation that the US will introduce sanctions against NIS due to Russian ownership.” He anticipates that the UK and the European Union will likely follow suit with similar measures.
Potential Diplomatic Fallout for Serbia
Vučić expressed concern that the sanctions could complicate Serbia’s diplomatic stance. “This will create problems with our Russian friends — politically and otherwise,” he told the Serbian service of Al Jazeera. He noted that while Serbia has not received official details from the US Treasury Department, the move is imminent.
Serbia’s Balancing Act Between Russia and the West
Serbia has consistently condemned Russia’s invasion of Ukraine in international forums like the United Nations but has resisted imposing sanctions on Moscow. The threat of sanctions on NIS puts Serbia in a difficult position, potentially forcing it to reconsider its ties with Russia.
Plans to Reduce Russian Ownership
In response to the impending sanctions, Vučić hinted at potential changes in NIS’s ownership structure. “We will explore options to reduce Russian ownership below 50% and discuss this with our Russian partners,” he stated.
This strategy could help Serbia avoid sanctions while maintaining diplomatic ties with both Russia and Western nations.
