USA requesting full withdrawal of Russian interest from NIS, deadline 45 days – Operations uninterrupted for now

The sanctions imposed by the US on Naftna Industrija Srbije (NIS) are the most severe ever to affect a company in Serbia, and the state is required to completely withdraw the Russian interests from the company within the next 45 days, Serbian President Aleksandar Vucic said.

– We will wait to see what other interpretations there will be, but according to what we have seen, it is a removal, not a reduction, they do not allow 49% or less of Russian capital, but a complete withdrawal of the Russian interests from NIS – Vucic said in an address to the citizens after confirming that sanctions had been imposed on NIS.

He said that NIS would only be able to continue operating regularly in the next 45 days, and that Serbia had 45 calendar days, ending on February 25, for all operations, including the ownership transformation plan that must be approved by the US government.

– By then, we not only have to complete the signing of any agreement or contract with the Russian side, but everything must be finished. Only if necessary, the financial transaction can be extended for another 15 days, until March 12, but even that financial transaction must be approved by OFAC, a department within the US Department of the Treasury – Vucic said.

After the expiration of that period for, as Vucic read out from the American sanctions document, “a controlled exit of all Russian-affiliated entities from NIS”, of 45 days, the sanctions will come into full force.

– It will only be possible to make the remaining payment of the potential purchase price of any share. During that period, only existing contracts and regular business operations can be maintained – he added.

He stated that those were very severe sanctions that had two legal bases – the decisions from 2014 and 2021, during the administrations of Barack Obama and Joe Biden.

– They did that so that it would be impossible to “wiggle out of the sanctions.” If the Russians wanted to sell their 50% plus 6% of both Gazpromneft and Gazprom, they could no longer sell it to anyone, to a Saudi company, a Qatari, an Emirati company, to anyone in the world. They can no longer do that, because that company, they (the US) left an open space, comes under their sanctions – said the Serbian President.

Vucic also added that, according to unofficial information, the United Kingdom would join the sanctions imposed by the US no later than Monday.

– The majority of European countries and European companies will not want to take any risks, because the US sanctions are very, very heavy and have very serious effects against those who would violate them – said Vucic.

He stressed that Serbia is not a hostile country to Russia and that it does not want any hostile takeover of its property, announcing that he expected talks with Russian President Vladimir Putin, as well as with the Americans and the Chinese.

The President told the citizens that they should not panic in any way, and that the state itself would not do so either.

– We will not rush to make wrong decision, although we will hurry because we know how short our deadlines are – said Vucic.

He added that he would ask the future US administration to review this decision, that is, to see if Serbia could obtain some mitigating circumstances.

Vucic also said that both Moscow and Washington are dear to Serbia, that he has nothing against anyone, but that the interests of the state would be “protected at all costs.”

– There will be no shortages and there will be no economic catastrophe. The fact that we will face great pressures and problems does not mean that we will not be able to overcome them. We will win this time too and Serbia will be the fastest growing economy in Europe in 2025 – said Vucic.

NIS: Operations currently running smoothly, we will consider all implications

Naftna Industrija Srbije (NIS) announced on Friday evening that the company's business was running smoothly, following the introduction of US sanctions.

– The supply of the NIS gas station chain is regular and the Pancevo Oil Refinery is operating in a normal mode, delivering all the necessary oil products to the market – the company told the Beta news agency.

They stated that NIS would carefully consider all the details regarding the published information and analyze all the implications for the company's business.

– At the same time, NIS will remain focused on maintaining stability in the domestic petroleum products market – they added in their response.

The US Department of the Treasury has imposed sanctions on NIS as part of a new package of comprehensive measures against Russian interests in connection with the war in Ukraine, as the Russian companies Gazprom and Gazpromneft own 56% of the Serbian company's shares.

Vucevic on sanctions against NIS: We must have parallel communication with both Washington and Moscow

The official Belgrade must now have parallel communication with both Washington and Moscow, said Serbian Prime Minister Milos Vucevic.

– Formally, we should not be the first target as a country, but this essentially complicates the situation in Serbia and requires a simultaneous game between President Aleksandar Vucic and the entire country and two opponents – both the USA and Russia – Vucevic told the Radio-Television Vojvodina.

Vucevic also said that he did not want to criticize the state's decision to sell the majority ownership of NIS to the Russian companies Gazprom and Gazpromneft in 2008.

– There is no need for me to do that. Let everyone assess whether that was a good price or not. In the end, we can no longer get it back. Now it's just a question of the measures we will adopt, because we really don't want to go into a hostile takeover, that is, to suppress the Russians without the consent of their companies – said Vucevic.

He assessed that it was also important that “the friends from Russia” now try to understand Serbia's position, that is, that Serbia “is not a pawn in the hands of the other side.”

– We simply do not want to be a tool, a means or a weapon in the hands of someone against another major player on the field. This is not a game that Serbia can play. Nor should it play it. I am talking about major geopolitical disputes – said Vucevic.

He stated that Serbia had to try to find the best possible model with the Russians to get out of the current situation.

– On the one hand, we need to find an agreement with the Russians on how to exit NIS, because it is impossible for NIS to be able to operate in this ownership structure, that is now clear. It will not be able to buy oil anywhere, it will not be able to take out a loan anywhere, it will not be able to use banking services. And on the other hand, we need to get a gas arrangement for the coming period, and we need a partnership with the Russians to get the best price and sufficient quantities – said Vucevic.

He said that the citizens of Serbia should not worry about regular supplies of oil, oil products, diesel, gasoline, and added that there were sufficient quantities of everything and that there would be enough of everything.

Vucevic expressed hope that there would be no congestion at Serbian gas stations due to the sanctions and emphasized that he believed that there should be none.

– At this moment, we have three months of regular supply of diesel and gasoline at all gas stations in Serbia, even if we couldn’t import anything – said the Prime Minister.

Asked whether the current situation could lead to certain “speculative actions” on the market, Vucevic said that those who did so – would not fare well.

– My warm advice is not to play with it. We are a little “tired” of all the calculating people and those who think that there are moments when they can blackmail the state. Don't do that, you will not fare well – said the Prime Minister.

Vucic: Serbia is not the target, about 30 countries affected by sanctions

Serbian President Aleksandar Vucic addressed the public after a meeting with US Deputy Secretary of State for Management and Resources Richard Verma.

– I am grateful to Richard for the visit, we discussed a wide range of issues, as well as sanctions that are directed against Russian entities around the world, about 30 countries in various ways affected by sanctions – said Vucic and added:

– For the people of Serbia, we were not a target, although that will not be much consolation for us. We talked about the overall Serbian-American relations.

Verma claims that the NIS sanctions are directed against Russia.

– There will be no economic consequences for Serbia if the Russian ownership of the company is removed – he said.

Vucic stated that he had asked for the deadlines to be more flexible and longer and that he believes that “we will find understanding and that we will be able to get that.”

– We are not going to take anything away, as things stand here, we would pay money into a blocked account, it is not fair to the Russians, nor to us. We want to be fair, and in the coming period we expect answers so that we can address the Russian side. I believe that we will resolve this in the next seven days, we have the money even without borrowing, but let's see how this ends.

NIS a.d. Novi Sad

Vlada Republike Srbije

NIS a.d. Petrol Rafinerija nafte Pančevo

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OFAC

Gazpromneft

Gazprom

US Department of the Treasury

Aleksandar Vučić

Miloš Vučević

Richard Verma

Pančevo Oil Refinery

US sanctions against NIS

sanctions imposed against NIS

implementation of sanctions against NIS

sanctions against NIS