Richard Parks The United States is set to impose sanctions on Serbia’s national oil and gas company, NIS, due to its significant Russian ownership. This development threatens to complicate Serbia’s energy security and diplomatic relationships.
Russian Ownership Puts NIS in the Crosshairs
Serbian President Aleksandar Vučić announced that the US is planning sanctions against Naftna Industrija Srbije (NIS) because of its ties to Gazprom and Gazprom Neft. These Russian companies own 6.15% and 50% of NIS, respectively. The rest of the shares belong to the Serbian government and smaller investors.
“We have confirmation that the US will introduce sanctions against NIS due to Russian ownership,” Vučić told Informer TV. He added that similar measures from the UK and the European Union are likely to follow.
Implications for Serbia’s Relations with Russia
Vučić acknowledged the potential strain on Serbia’s relationship with Russia, saying, “This will cause problems with our Russian friends, from politics to everything else.” The US Treasury Department has not yet issued an official statement, but Vučić confirmed that Serbia is preparing for the impact.
Serbia’s Balancing Act Between East and West
While Serbia has condemned Russia’s invasion of Ukraine in international platforms like the United Nations, it has resisted imposing sanctions on Moscow. The threat of sanctions on NIS puts Serbia in a difficult position, caught between maintaining energy security and aligning with Western policies.
Potential Ownership Restructuring to Avoid Sanctions
Vučić suggested that Serbia might reduce Russian ownership in NIS to avoid sanctions. “We will see if it’s possible to bring Russian ownership below 50% and negotiate with our Russian partners,” he stated.
This move could help Serbia protect its energy sector while maintaining a delicate balance in its foreign relations. However, any changes are likely to have wide-reaching implications for the country’s future energy strategy and international standing.