Vucic says Russia has 37 days to sell NIS stake or Serbia will act

Serbia’s President Aleksandar Vucic on December 9 set out three possible outcomes for resolving the future of oil company Naftna Industrija Srbije (NIS), which has been hit by US sanctions and unable to import crude for two months.

Vucic said the first option — that the United States grants NIS a licence or lifts sanctions on Russian companies — was “not likely”. The second, and more probable, scenario is that Russia sells its majority stake in the company. The third option, which he said he hopes to avoid, would see Serbia step in as a state.

“If it happens, it will happen in 37 days. January 15 is the deadline,” Vucic told a panel at the GLOBSEC BELTALKS Forum in Belgrade. “There will be no extension. Fuel supplies for citizens and the economy must not be jeopardised.”

He warned that Serbia also faces the risk of secondary sanctions. “Every morning, the first thing I check is whether there is any news about secondary sanctions against our banks,” he said, adding that Serbia’s fiscal and monetary stability was now at risk because of NIS.

Vucic said that if state intervention becomes necessary, Serbia would not nationalise NIS but would buy out the Russian stake. “Friends tell me we put ourselves in a difficult position by not imposing sanctions on Russia,” he said. “I am sure the Russians understand that if sanctions are not lifted, they will have to sell.”

He added that he “cannot imagine” fuel shortages in Serbia and said he is still awaiting information from Moscow on a separate gas supply arrangement.

An Emirati company ADNOC is the leading bidder for NIS, four people familiar with the talks told the Financial Times on December 9. Russia is also in discussions with other potential buyers, including Hungarian oil group MOL. NIS’s 2024 report lists assets of $4.7bn, of which around $2.6bn corresponds to the Russian-owned share.

NIS — majority-owned by Gazprom Neft and Gazprom-affiliate Intelligence — has been unable to secure crude since October 9, when US sanctions blocked deliveries via Croatia’s JANAF pipeline. Serbia’s only refinery, in Pančevo, began suspending production on December 2 due to a lack of crude, though NIS says it is maintaining domestic supply from existing stocks.

Vucic said on November 25 that Russia had been given 50 more days to sell its 56.15% stake. If no sale is agreed by mid-January, Serbia plans to place NIS under temporary state administration and compensate the Russian owners “at the highest possible price.”