Serbian President Aleksandar Vucic said that while the EU (European Union) sanctions against Russian oil companies are in force, Serbia wants to talk to the Russians about NIS, the majority of which belongs to two Russian energy companies, and take over if necessary.
According to the news in Balkan Insight (BIRN, Balkan Investigative Reporting Network), Serbia sold 51 percent of its only oil company NIS to Russia’s energy giant Gazprom in 2008, and according to critics, it was 400 million euros. plus an investment of 550 million was promised for the bargain price.
In his statement, President Vucic said that in addition to rising prices in world markets, another big problem is the inability to obtain spare parts because their refineries are under sanctions because they are owned and managed by the Russians.
In an interview with Pink Television, one of the private TV channels in Serbia, Vucic said that to solve these problems, it will be necessary to talk to the Russians, take over the company while the EU sanctions regime continues and sign definitive agreements on what to do when sanctions are lifted. Vucic also said: “But that’s only if we have to, because we won’t steal anyone’s property.”
Russia’s Gazprom, which is not subject to EU sanctions, owns 6.15 percent of NIS. But its subsidiary Gazprom Neft, which has the sanctioned Western Balkans exemption clause, owns a 50 percent stake. Most of the crude oil that Serbia imports comes through the pipeline of Croatian oil pipeline operator “Jadranski naftovod, JANAF” and mostly comes from Russia and Iraq. According to Serbia’s 2020 Security of Supply Statement, it is stated that NIS’s crude oil meets 25 percent of the country’s total needs.
With increasing pressure to choose between its traditional ally Russia and EU ambitions since the start of the war in Ukraine (February 2022), Serbia has faced an issue over the ownership structure of the NIS since the EU imposed sanctions on Russian energy.
With the sixth package of sanctions, the EU imposed an embargo on imports of crude oil and refined petroleum products from Russia. It also prohibited EU operators from “insuring and financing the transport of oil to third countries, particularly by sea,” after a grace period of six months. However, these sanctions have some exceptions and delayed periods for countries such as Bulgaria, Croatia and the Czech Republic. When the EU imposed a fourth package of sanctions on 16 March, it joined its members in any relationship with “any legal person, entity or entity established outside the union and whose property rights, directly or indirectly, are owned by more than 50 percent” by many companies, including Gazprom Neft. prohibited from taking any action.
This affected NIS, given that Gazprom Neft held 56.15 percent of the shares at the time. However, the EU’s fifth package excludes “any member of the European Economic Area, Switzerland or the Western Balkans” from the ban.
The opinions expressed herein are the author’s and not necessarily those of News2Sea.