Sanctions Squeeze: Serbia's Oil Refinery Faces Shutdown

Serbia's exclusive oil refinery is teetering on the brink of shutdown, with operations projected to cease by November 25 unless fresh supplies are secured. This development follows U.S. sanctions targeting the Russian-owned operator NIS, as reported by the Tanjug news agency, citing the country's energy minister.

The sanctions trace back to a U.S. Treasury directive targeting Russia's oil sector, issued on January 10, mandating Gazprom Neft's exit from NIS ownership within 45 days—a deadline eventually enforced on October 8. Consequently, financial transactions with NIS have ceased, and Croatia's JANAF pipeline has halted oil deliveries.

In light of these challenges, Serbian Energy Minister Dubravka Djedovic Handanovic reassured stakeholders of the country's robust oil reserves, saying, 'We are fully stocked with mandatory reserves to avert market disruptions.' However, sanctions on Russia's Lukoil and a fire at Hungary's MOL refinery continue to pose obstacles, complicating import logistics.