Washington is not prepared for any compromises regarding sanctions against Naftna industrija Srbije (NIS) and expects the Government of Serbia to present a concrete proposal, i.e., a plan, on how it will eliminate Russian control and ownership in this company, according to unofficial conversations with a source from the US administration.
The position of the United States of America (USA) is that, in essence, there are two solutions: the sale of the Russian stake to an entity not connected to Russia in any way, or the nationalization of the part of NIS owned by Gazprom and Gazpromneft.
The Russian side has not yet responded positively to the proposal to sell its stake.
The President of Serbia, Aleksandar Vučić, recently stated that “nationalization is the last option.” A source from the American administration commented on this by saying that “sometimes the last option is the best option.”
The American source clearly emphasizes that it is not just about reducing the percentage of participation that Gazprom and Gazpromneft have in NIS, but that the key demand is the complete removal of Russian control and ownership influence.
Washington expects a clear proposal and plan from official Belgrade on how to achieve this. According to available information, talks on this are ongoing between Washington and Belgrade, but the Government of Serbia has not yet submitted any official proposal.
Any “creative” solution, the source points out, must lead to “Russia no longer making a profit in Serbia that would finance the war in Ukraine.” American officials reiterate that “sanctions are not aimed against Serbia or the citizens of Serbia,” but are part of a broader strategy to exert pressure on Russia to stop the war.
After multiple delays, sanctions against NIS have now been introduced, and Serbia, according to the source, can no longer expect any “concessions” when it comes to gas or oil.
By implementing sanctions against NIS, Washington shifted the focus for solving the issue of Russian ownership and control to the Government of Serbia, after “Russian authorities were not prepared for nine months to reach an agreement on NIS or the war in Ukraine.”
The process of lifting sanctions against NIS, after the conditions for it are met, could last for months. The source notes that the decision of the Government of Serbia should be made as soon as possible, because supplies are decreasing.
“The main problem is not the authorities in Serbia, but the authorities in Russia who have not shown a willingness to help Serbia,” states the source from Washington. As an illustration, the source reminds that the company Lukoil announced the sale of its assets abroad, which shows that the sale of Russian energy resources is possible, but that Moscow was not willing to do so in the case of Serbia.
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Source: N1 Photo: NIS / Naftna Industrija Srbije