Serbia’s president warned on Tuesday, December 2nd that the government may have to completely cut ties with its largest oil firm, as U.S. sanctions squeeze the majority-Russian-owned company.
Since October 9, Serbia’s only oil refinery has been unable to receive crude oil after it was hit by sanctions as part of Washington’s broader crackdown on Russian energy following the invasion of Ukraine.
Facing a shutdown of the Petroleum Industry of Serbia’s (NIS) refinery within days, President Aleksandar Vučić also said that if sanctions continued, the government would need to stop all payments to and from the company.
The firm, which operates a fifth of the country’s petrol stations, would also be forced to close its retail outlets.
“There will be enough fuel, but people will simply have to use other petrol stations,” Vučić told a press conference.
The government said it had enough stockpiled fuel to supply other companies not caught up in the measures.
NIS would be allowed to access payment services for the rest of the week, mainly to pay employees and settle with suppliers.
But Vučić said a prolonged operation could risk secondary sanctions and “the complete destruction of the Republic of Serbia’s financial system.”
Belgrade is waiting for Washington’s decision on a requested sanction reprieve, as negotiations between the Russian shareholders and potential buyers continue.
