Serbia's future oil supply unclear as US sanctions loom

Core Insights - Serbia has sufficient crude oil and fuel in storage to meet short-term demand, but upcoming U.S. sanctions pose a threat to the country's long-term energy security [1][3] - NIS, the only oil refinery in Serbia, is majority-owned by Russian entities and supplies a significant portion of the country's fuel needs [3][4] Company Overview - NIS operates Serbia's sole oil refinery, supplying approximately 80% of diesel and gasoline, and over 90% of jet fuel and heavy fuel oil in the country [3] - The refinery has a capacity of 4.8 million tons per year and relies on the JANAF pipeline in Croatia for crude oil supply [6] Sanctions Impact - U.S. sanctions targeting Russia's oil sector are set to take effect on October 1, which may lead to foreign banks halting transactions with NIS, impacting its operations [3] - JANAF has confirmed it will cease supplies to NIS once the sanctions are enforced, although it plans to appeal for a license extension [6][7] Financial Considerations - NIS has secured adequate crude and fuel stocks for the short term, but there are concerns about its ability to access domestic financial markets to maintain operations [4] - The Serbian government and industry sources emphasize the need for immediate actions to ensure NIS can continue operating the Pancevo refinery [4]