BELGRADE, November 25. /TASS/. NIS (Naftna industrija Srbije) announced that it has begun procedures for suspending operations at its Pancevo refinery due to oil shortages caused by US Treasury Department sanctions, the company's press service announced.
NIS confirmed that, in the first stage, the refinery's capacity has been switched to "warm circulation" mode.
"In the first phase, the plants were introduced into warm circulation, and the entire process is carried out in accordance with the laws of the Republic of Serbia, the company’s internal rules, and the strictest environmental standards, as well as occupational safety and health rules," the company noted.
The company stressed that the refinery’s activities during the warm circulation period "will be organized in such a way that the refinery plants are ready to restart as soon as conditions allow, that is, as soon as information about the availability of crude oil is received."
The company stated that supplies to the domestic market are currently uninterrupted.
"NIS continues to supply the domestic market with petroleum products without interruption, thanks to previously secured stocks," the company stressed.
NIS expressed hope for a speedy restoration of the Pancevo Refinery, which plays a vital role for the country and the region.
"The Pancevo Refinery is important not only for supplying Serbia but also for regional markets," the company stated, adding that over 900 mln euros has been invested in the facility since 2009. It also noted that the refinery is a key facility for the operations of the Serbian petrochemical company HIP Petrohemija, which will also begin preparations for the shutdown.
The company underscored that it acted strictly within the law.
"It has not contributed in any way to the introduction of sanctions that jeopardize the company’s work and the social stability of more than 13,500 employees," the statement read. NIS specifically stated that the company remains committed to efforts to be delisted from the US Treasury Department's SDN (Specially Designated Nationals) or to obtain a new special license.
Regarding the NIS situation
Earlier on Tuesday, Serbian President Aleksandar Vucic warned that the closure of NIS could have dire consequences for the country's economy. He stated that the company's shutdown would affect "literally the entire life cycle" of Serbia—from the banking sector to energy and healthcare. The head of state reported that the National Bank and commercial banks had been warned of the risk of secondary sanctions, which could lead to a "complete halt in payment transactions" and card operations. He noted that Belgrade had received verbal assurances from the US that such measures would not be taken, but that no official decision had yet been made.
In early January 2025, the US Department of the Treasury introduced sanctions against Russian oil producer Gazprom Neft, its CEO Alexander Dyukov, and against Serbian NIS. The US has repeatedly postponed sanctions against the company since then. Restrictions came into force on October 9.
NIS is one of the largest vertically integrated energy systems in Southeastern Europe. Its majority shareholders are Gazprom Neft (44.85% of shares), Gazprom (11.3%), and Serbia (29.87%).
The Serbian Energy Ministry reported on November 11 that NIS's Russian owners had notified the US Treasury Department's Office of Foreign Assets Control (OFAC) of their readiness to transfer control of the company to a third party. Earlier this month, NIS requested a new license from Washington that would allow it to continue operating during negotiations on the change of ownership.