Serbia Ready to Increase Spending to Regain Control of the Only Oil Refinery from Russia

SadaNews - Serbia has expressed its readiness to pay a higher price to regain control of the oil refining company "NIS AD", while looking for ways to separate the Russian-owned company from intensified U.S. sanctions, according to President Aleksandar Vučić on Sunday.

Vučić said during a live broadcast of a government meeting in Belgrade discussing solutions to the crisis that the owners of "NIS", which is a subsidiary of "Gazprom", are in sales talks with investors from Asia and Europe.

Vučić added: "If they do not agree on a purchase price, I suggest we offer a better price," stating: "We are even ready to pay a higher price" for the 56% stake owned by the "Gazprom" units.

Serbia's only refinery is at risk of running out of crude oil within days after the sanctions that came into effect on October 9 cut off the supply route through neighboring Croatia. Vučić and Finance Minister Siniša Mali warned that this could have devastating implications for the Serbian economy and its credit rating.

Avoiding a Fuel Crisis in Serbia

Vučić noted that the country has only one week to find a solution and avoid a fuel crisis. He added: "Whatever the cost, we will find the money".

The Serbian president explained that a potential state acquisition, which owns about 30% of the refinery, would require negotiations with international financiers and possibly a budget review to secure funding, without mentioning a potential valuation.

Vučić stated: "We want to avoid confiscation or nationalization". He added that Russian shareholders, as the largest owners, "have the right to make decisions, but we have the right to live".

Bulgaria Protects Its Market by Controlling the "Lukoil" Refinery

Vučić cited Bulgaria's decision last week to take control of the local refinery owned by "Lukoil PJSC", which is also facing the threat of U.S. sanctions, as an example of the steps other countries are taking to protect their markets.

Trading of "NIS" shares was suspended in January after the U.S. Treasury's Office of Foreign Assets Control revealed sanctions that came into effect last month following several delays aimed at allowing a deal to remove Russia from ownership of the fuel company.

The Russian owners requested last week an extension of "NIS"'s license from the United States while seeking to transfer control to a third party, but Washington rejected the request and insisted on a complete Russian withdrawal. This move is part of a broader campaign by the Trump administration to pressure the Russian energy sector and push President Vladimir Putin toward peace talks to end his war in Ukraine.