US Sanctions Serbia's NIS, Gazprom Neft Given February 25 Deadline to Divest €700M Stake

Jan 11, 2025, 04:19 AM

The United States has imposed stringent sanctions on Serbia's sole oil and gas company, Naftna Industrija Srbije (NIS), which is majority-owned by Russian energy giant Gazprom Neft. The sanctions are part of a broader effort to target Russia's oil sector and require Gazprom Neft to divest its 56.15% stake in NIS within 45 days, with a deadline set for February 25, 2025. Serbian President Aleksandar Vučić described the sanctions as the harshest ever imposed on a Serbian company and indicated that Serbia might need to buy out the €700 million Russian stake to ensure continued operations. NIS’s market capitalization stands at just over $1 billion. Vučić also expressed plans to engage in discussions with the United States and Russia to address the situation. The measures are part of a larger U.S. sanctions package aimed at curbing Russian energy revenues, while Serbia seeks to preserve local fuel production.