Vucic says US to impose sanctions on Serbian company NIS

The oil and gas company NIS is 50% owned by Gazprom Neft, with Gazprom holding another 6%. Serbia holds about 30% of the shares. Vucic admits that Belgrade may buy out part of the company's Russian share Aleksandar Vucic

The United States may soon impose sanctions against the energy company Naftne industrije Srbije (NIS), which is more than half owned by Gazprom, the country's president, Aleksandar Vucic, said on TV Informer.

"I have to say that this is one of the hardest news in the last few years, it was confirmed to us, we have not yet received an official document, but we have received confirmation of this news . <...> The United States of America will introduce full, full sanctions against Naftne industrije Srbije in a few days because of Russian property," Vucic said ( quoted by Politika). He called the decision "geopolitical."

The president clarified that the United Kingdom has also joined the US sanctions . The date on which the sanctions will come into force is still unclear, he said.

N1Info, citing data from the central register of securities, reports that Russia's Gazpromneft owns 50% of NIS shares, Serbia - 29.87%, Gazprom - 6.15%. Vucic indicated that Belgrade is going to discuss with Moscow the buyout of part of its stake in order to reduce it to less than 50%.

NIS is the largest energy company in the Balkans, which is engaged in exploration, production and processing of oil and natural gas, owns an oil refinery in the city of Pancevo near Belgrade and a network of more than 400 petrol stations. It is engaged in exploration and production outside Serbia - in Romania and Bosnia and Herzegovina.

In November, Russia and Serbia signed a memorandum on the construction of a joint oil transportation infrastructure on Serbian territory, said Economic Development Minister Maxim Reshetnikov. The project will connect the oil refinery in Szazhalombat, Hungary, with the Serbian oil pipeline network. The Druzhba oil pipeline from Russia goes to Hungary. Transneft, the operator of Druzhba, announced its readiness to help implement the project.

In early December, Serbian Deputy Prime Minister Aleksandar Vulin announced Serbia's interest in increasing gas supplies from Russia and possibly concluding a new agreement. Vucic noted that Belgrade is discussing a three-year agreement with Moscow.

Read RBC on Telegram .