The process of suspending the operation of production facilities at the Pančevo Oil Refinery began yesterday due to a lack of crude oil for processing, which arose as a consequence of sanctions imposed on the NIS company by the US Treasury Department. The President of Serbia, Aleksandar Vučić, said that it was agreed that, at the risk of the state, payment transactions with NIS would be secured by the end of the week.
It is the fifty-sixth day since US sanctions against the Oil Industry of Serbia, which is majority-owned by Russia, took effect.
Yesterday, a meeting on NIS was held between the President of Serbia, Aleksandar Vučić, and the country’s energy stability and security teams in the Presidency building.
The President of Serbia, Aleksandar Vučić, said after the meeting that, although we expected NIS to receive a license to continue the refinery’s work, we did not receive a positive decision from the USA.
We agreed, at Serbia’s risk, to secure payment transactions with NIS by the end of the week, Vučić stated.
Serbia warns of consequences for supply, while experts point out that it is a geopolitical issue whose outcome will also affect other Russian energy companies. The situation is still uncertain – a decision from the State Department and the Office of Foreign Assets Control (OFAC) is still awaited. According to previous announcements, the refinery should officially cease operations today if Washington does not approve the license.
Professor Velimir Lukić assesses that the issue of NIS is geopolitical and foreign policy-related, and that OFAC’s decision will have consequences for other Russian energy companies as well. He stated that domestic reserves will start to empty and that he expects an increase in imports.
Former Deputy Assistant US Secretary of State for Energy Affairs, Geoffrey Pyatt, claims that American sanctions provide the legal framework to remove Russian ownership.
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Source: RTS, Photo: NIS / STOYAN VASSEV / Press