US Extends NIS License, Keeping Serbia’s Only Refinery Running Amid Sanctions

The United States has granted a temporary extension to the operating license of the Serbian oil company NIS, which is currently under sanctions, according to Serbia’s Energy Minister Dubravka Džedović-Handanović. The extension, valid until April 17, ensures that the Pančevo refinery can continue operations without interruption, providing stability to fuel supplies at a time when oil prices are climbing daily.

This development comes amid ongoing negotiations for the sale of the majority Russian stake in NIS, with Hungarian company MOL involved in the talks. The US Treasury Department has set March 24 as the target date for completing the deal, which Serbia expects to meet. The extension of the license prevents a shutdown of the country’s only oil refinery, which had previously been forced to halt production in December after sanctions cut off crude oil deliveries.

NIS plays a crucial role in Serbia’s energy market, supplying roughly 80% of the country’s fuel. The company was acquired by Gazprom in 2008 for 400 million euros. Currently, Gazprom Neft holds 45% of NIS, though it is subject to US sanctions, while another 11.3% is held by an affiliated company. The Serbian state owns approximately 30%, with the remainder held by minority shareholders. Following the completion of the sale, authorities plan to raise their stake by an additional 5%, strengthening state involvement in the company.

Dubravka Džedović-Handanović emphasized that the extension comes at a critical moment, maintaining operations at Pančevo and safeguarding fuel supply during a period of rising global oil costs. The move is seen as a temporary but necessary measure to bridge the gap until the transfer of the Russian stake is finalized.