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U.S. Sanctions on Gazprom-Linked Serbian Oil Company NIS Take Effect

The measures seek to force Gazprom’s exit or nationalization of NIS to cut Russian energy revenues.

Overview

  • NIS said after the Oct. 9 start of sanctions that it is working with the U.S. Treasury to resolve its designation and that refineries and stations remain supplied.
  • The company expects foreign bank cards to be rejected at its stations, limiting payments to Serbian cards or cash, following warnings that banking would be hit first.
  • NIS covers more than 80% of Serbia’s diesel and petrol demand, with analysts cautioning that knock-on effects could reach agriculture and Air Serbia’s fuel supply.
  • Serbian officials say scenarios for the company’s future are under discussion, including a possible sale of Russian shareholders’ stakes.
  • Regional effects are emerging, with reports of a brief U.S. extension for Croatia’s JANAF to complete contracted deliveries and an Oct. 10 NIS board meeting on operating under sanctions.