Serbia’s only oil refinery, which produces most of the country’s fuel, could stop operating as early as Tuesday due to U.S. sanctions on its Russian owners.
The Petroleum Industry of Serbia (NIS) has been under sanctions since October 9, part of Washington’s crackdown on Russia’s energy sector.
Officials say the refinery has fuel reserves and imports lined up, but analysts warn these may not be enough to replace local production.
Serbian leaders are negotiating with Russian owners for a sale and have requested a temporary exemption from U.S. sanctions. If no agreement is reached, a state takeover may be considered, although President Aleksandar Vučić would prefer to buy the stake rather than seize it.
Serbia also relies heavily on Russian gas, and parallel talks over supplies are ongoing.
