December 1, 2025
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HomeNews Serbia EnergySerbia warns Pancevo refinery will shut down without new U.S. license

Serbia warns Pancevo refinery will shut down without new U.S. license

Supported byClarion Energy

Serbian President Aleksandar Vučić announced that the Pančevo refinery, operated by oil company NIS, will be forced to halt operations on 2 December unless the United States grants a license allowing the company to continue working under the existing sanctions framework.

President Vučić warned that, without this authorization, Serbia will need to secure alternative channels for crude oil and petroleum product supplies. He added that the Government is already preparing for such an outcome, assuming that Washington may delay its decision under the pretext that more information is required. According to Vučić, U.S. authorities appear indifferent to the economic consequences for Serbia, while Russian shareholders have little incentive to accelerate the process because a prolonged ownership situation benefits their position.

NIS submitted a new request to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) on 18 November, seeking a special operational license. The currently valid license—issued on 14 November and effective until 13 February 2026—allows only negotiations on changes to the company’s ownership structure, not full operational continuity.

Supported byVirtu Energy

The refinery and its parent company came under U.S. sanctions on 9 October, triggered by the majority Russian ownership stake. The fate of the Pančevo refinery now depends on OFAC’s forthcoming decision and its assessment of Serbia’s compliance with the sanctions regime.

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