Serbia is actively pursuing an increase in its ownership of the oil company NIS to assert greater control over its strategic decisions, particularly in light of recent US sanctions targeting its Russian stakeholders. President Aleksandar Vučić announced plans for the state to acquire an additional 5% stake, which would elevate its total ownership to 34%. This move is intended to provide the government with enhanced oversight of financial operations and management practices within the company.
Currently, Serbia holds just under 30% of NIS, with the majority of shares dominated by Russian interests. GazpromNeft is the largest shareholder, owning 44.85%, while an additional 11.3% is held by a St. Petersburg-based entity linked to Gazprom. The remaining shares are distributed among various minority investors, highlighting the significant foreign influence on NIS’s operational framework.
US Treasury sanctions against NIS took effect in October due to these Russian ownership ties, following a series of announcements and delays. Recently, the Office of Foreign Assets Control (OFAC) granted NIS a temporary license to continue operations until January 23, while also extending negotiations for the sale of the Russian stake until March 24.
In December, discussions were reported between NIS and Hungarian MOL regarding the potential sale of their combined 56.15% Russian-owned share in the refinery operator. President Vučić expressed optimism that an agreement could be reached between Russian and Hungarian stakeholders by mid-January, which would alleviate some of the pressures stemming from the sanctions.
However, Vučić also indicated that Serbia is prepared with an alternative plan should these negotiations fail. In such a scenario, the Serbian government would take management control and consider purchasing the Russian stake at a fair market price. This strategy underscores the importance of maintaining operational continuity at NIS, which plays a critical role in ensuring national energy security for Serbia.
