Energy standoff: US tells Serbia to completely remove Russian ownership from NIS; Belgrade warns of ‘historic’ decisions ahead – The Times of India

The United States has told Serbia it will not lift sanctions on the country’s largest oil company, NIS, unless Belgrade ensures a complete withdrawal of Russian ownership, Serbian Energy Minister Dubravka Djedovic Handanovic said on Saturday, calling the coming weeks “some of the most difficult decisions in our history.”NIS – Serbia’s Petroleum Industry – has been under US sanctions since 2022, imposed as part of Washington’s crackdown on Russia’s energy sector following the invasion of Ukraine, AFP reported. The measures have dealt a major blow to Serbia, pushing the country dangerously close to a winter energy crisis and putting its only refinery at risk of closure.Handanovic said Belgrade had asked the Trump administration to lift sanctions in exchange for a management restructuring, but US officials pushed for full Russian divestment. “For the first time, the US government has said clearly and unequivocally that it wants a complete change of Russian shareholders,” she told reporters.Washington has given Serbia until February 13 to negotiate a solution.NOS is 45% owned by Gazprom Neft, which has already been sanctioned by Washington. Gazprom transferred its additional 11.3% stake to another Russian entity, Intelligence, in September. The Serbian state owns almost 30%, with the rest divided among minority shareholders.Despite repeated delays, the US Treasury Department began imposing sanctions on NIS on October 9, increasing pressure on Belgrade.The Serbian government is now investigating whether it should take control of the NIS to prevent the energy system from collapsing. A special cabinet meeting is scheduled for Sunday.Handanovic acknowledged the internal resistance, saying: “I know that President (Aleksandar) Vucic is against nationalization, as are many of us in the government,” she said. “We will not allow our country to be put at risk, but in the coming days we may face some of the most difficult decisions in our history.”She urged Moscow to recognize the gravity of the moment. “I hope that our Russian friends will understand the seriousness of the situation and help us overcome it,” she said.Serbia, which is heavily dependent on Russian natural gas, remains one of the few European countries that has not imposed sanctions on Moscow since the start of the war in Ukraine.