The refinery in Pančevo is in the process of warm circulation, and it can operate for another four days without a license, confirmed the President of Serbia, Aleksandar Vučić, in an extraordinary address from the Presidency building.
„We want to inform you that the NIS Refinery is in the technological process of so-called warm circulation. To translate that, in a kind of silent mode, it is not yet shut down, but it is a lower operating regime compared to the usual one“, he explained.
Vučić also stated the deadline until the cessation of work.
„We have four more days until the complete cessation of the Refinery’s work, unless the license is approved by OFAC“, he emphasized.
Our position, as he reiterated, is becoming increasingly difficult, and he added that we have become a target through no fault of our own.
„For nine months we were transcribing what our Russian friends asked of us, and we reached the point where sanctions were imposed on us as we expected“, Vučić pointed out.
Our country has been brought into a very difficult situation, he added.
„We have today and tomorrow left to try to obtain an operating license. Whether we get it depends on the Americans“, he said.
Vučić also spoke about the consequences.
These are secondary sanctions. The National Bank of Serbia, as well as all commercial banks, received a warning that they could become subject to sanctions due to doing business with NIS, he reminded.
According to him, this means that a complete suspension of payment transactions may occur.
„I personally received guarantees from the Americans that there would be no such sanctions for the National Bank and commercial banks, and that oral agreement was functional. There is no threat until we receive notification from the Americans whether they have approved or rejected the license“, he stated.
The functioning of healthcare, and primarily the Emergency Service, will also be endangered, although it will function without problems until at least January 15, he added.
The supply of all retail chains, and the supply of all basic foodstuffs, will also be endangered.
„The production of all key resources, including electricity production, is also endangered, which can cause immeasurable consequences“, Vučić warned.
The operation of heating plants in all cities and municipalities will also be endangered, where the temperature in citizens’ apartments and houses may be lower than expected, he stated.
Additionally, transport will suffer, including public transport, and, as he pointed out, an increase in fuel prices is inevitable.
Also, general security will be threatened due to the weaker ability of the police to function, Vučić emphasized.
He reminded that NIS is the largest wholesaler, from which many small gas stations get fuel.
„There are many small gas stations that buy from NIS and go into retail. If you have to import petroleum products, transport costs increase, meaning prices rise“, he explained.
Additionally, as he stated, the supply of cheaper diesel to farmers will also be endangered.
The refinery will be able to remain in this status until November 29, Vučić reiterated.
„NIS has already started using its operating reserves. If there is no flow of crude oil, i.e., if we do not get the license, NIS reserves of 55,000 tons of diesel and 50,000 tons of gasoline will remain“, he revealed.
According to estimates, this can last until December 28, he said, adding that their assessment is that about 50,000 tons of diesel will be missing.
„We are ready to intervene immediately as a state, so that there are no shortages, we have 184,000 tons of diesel and we will immediately make it available to all wholesalers“, Vučić revealed.
Our reserves are large, he emphasized. We increased those reserves by as much as 72 percent in the previous three years.
He also added that we have 19,172 tons of gasoline, which is consumed much less than diesel. We also have 68,166 tons of fuel oil, which is enough for a year of operation.
„We have ordered an additional 35,000 tons of Eurodiesel and an additional 5,300 tons of kerosene and paid for everything. We have also contracted an additional 38,000 tons of gasoline and 20,000 tons of diesel, which will arrive during December and January“, the president said.
The sanctions are the result of political pressure, and not the result of law, justice, or anything else, Vučić said.
„We changed the ownership of NIS three times this year, and each time we had the right of first refusal. Both in February, May, and September of this year“, he stated.
We did not do it even once, we let the Russians decide, he said.
As the media reported earlier today, the refinery in Pančevo suspended production.
The facilities have entered the so-called warm circulation. Warm circulation is a term when a certain amount of raw materials circulates through the system in order to keep the system functional.
We remind you that the American sanctions against the Oil Industry of Serbia entered into force on October 9, after being postponed several times.
According to the announcements of state officials, it was estimated that the refinery has crude oil until Tuesday, November 25, i.e., until today. Because of this, Serbia was waiting for a decision from the USA for a new license, because the refinery in Pančevo is using the last stocks of crude oil for processing.
The Government of Serbia held several sessions dedicated precisely to the energy situation in our country.
Optimistic messages were sent to the citizens, that there is no reason for concern because there are currently enough of all energy sources and reserves have been secured.
When it comes to the sale of the Russian share in NIS, various scenarios were mentioned, and the latest in the series of potential buyers was an oil company from Abu Dhabi. However, some energy experts believe that this is only a facade and that the Russians actually do not want to sell their share in NIS.
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Source: Danas; Photo: ATAImages