US Sanctions Choke Serbia’s Oil Lifeline: Pancevo Refinery Faces November Shutdown

Serbia’s sole oil refinery in Pancevo has been cut off from pipeline crude after US sanctions against the Petroleum Industry of Serbia (NIS), the country’s main oil supplier, took full effect on October 9, according to SeeNews.

Croatian pipeline operator Janaf said it “will not be able to continue executing its crude oil supply contract with NIS” following the end of a temporary waiver, while adding it is “actively work[ing]… on exploring possible solutions” within the rules.

NIS is majority-controlled by Russian interests through Gazprom Neft (44.9%) and a Gazprom investment unit (about 11.3%), with the Serbian government holding 29.9%.

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NIS confirmed the lapse of its US authorization. “The special license from the US Department of the Treasury, which enables seamless operational business, has not yet been extended,” the company said.

Bojana Radojevic, NIS’s retail director, added: “There are no restrictions when it comes to the quantities people can take, so there is no need for them to stockpile.”

In a televised address, Serbian President Aleksandar Vucic warned of broad repercussions and said the refinery cannot operate past November 1 without fresh crude.

Earlier, it was reported that the United States granted a final one-month waiver allowing Serbia’s NIS, majority-owned by Russian firms, to continue operations under US sanctions, while the Pančevo refinery remained supplied via Croatia and explored a future Hungarian link.

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