Serbia has received another exemption from U.S. sanctions for its Russian-owned oil company NIS (NIIS.BEL), valid until September 30. Energy Minister Dubravka Đedović Handanović announced this on Instagram on Friday, UNN reports.
According to Reuters, the sanctions exemption granted by the U.S. Office of Foreign Assets Control will allow NIS, which operates Serbia’s only oil refinery, to continue importing crude oil until the sale of the controlling stake in the Russian company to Hungarian oil and gas company MOL (MOLB.BU).
"The extension of the license allows us to continue supplies (to the market) while working on a long-term solution for NIS," Đedović Handanović said.
In October last year, OFAC imposed sanctions on NIS as part of broader measures targeting Russia’s energy sector in connection with the war in Ukraine, and demanded the sale of the 56% stake owned by "Gazprom."
The publication notes that this exemption is crucial for Serbia, as NIS covers about 80% of the country’s demand for petroleum products. Imports of other types of fuel into the Balkan country fell to 25% of the monthly target in July, as record-low water levels in the Danube forced barges and tankers to operate at one-third of their carrying capacity.
Đedović Handanović said that negotiations between MOL and "Gazprom" are in the final stage.
"The extension of the license is a signal that there is progress and a willingness to provide the additional time needed to complete this complex deal," she said, without elaborating.
OFAC granted NIS a number of sanctions exemptions allowing it to import oil through the Croatian "Janaf" pipeline, while MOL completes the acquisition following the signing of a preliminary agreement in January.
The Serbian government owns 29.9% of NIS, while the remainder is owned by minority shareholders and employees.