The United States is poised to sanction Serbia’s state-owned oil and gas company, NIS, citing its significant Russian ownership. The impending sanctions could strain Serbia’s energy sector and international relationships.

NIS Ownership by Russian Firms Triggers Sanction Threat

Serbian President Aleksandar Vučić revealed that the US plans to impose sanctions on Naftna Industrija Srbije (NIS) because of its ties to Russian energy giants. Gazprom holds a 6.15% stake in NIS, while its subsidiary Gazprom Neft controls 50%. The remainder of the company is owned by the Serbian government and smaller shareholders.

“We have confirmation that the US will introduce sanctions against NIS due to Russian ownership,” Vučić stated in an interview with Informer TV. He also anticipates that the UK and the European Union will follow the US with similar measures.

Diplomatic Complications for Serbia

Vučić expressed concern about how these sanctions might affect Serbia’s ties with Russia. “This opens us up to problems with our Russian friends, from politics to everything else,” he told Al Jazeera’s Serbian service. Though the US Treasury Department has not issued an official statement, Serbia is preparing for the expected sanctions.

Serbia Balances Between Russia and the West

While Serbia has condemned Russia’s invasion of Ukraine in international platforms such as the United Nations, it has avoided imposing sanctions on Moscow. The move against NIS places Serbia in a precarious position, balancing historical alliances with Russia and its relationships with the West.

Possible Reduction of Russian Stake in NIS

To avoid sanctions, Vučić suggested reducing Russian ownership in NIS. “We need to explore ways to bring Russian ownership below 50% and negotiate with our Russian partners,” he stated.

This potential restructuring could help Serbia protect its energy security while navigating the complexities of international diplomacy.