A special meeting of the Board of Directors of Naftna Industrija Srbije (NIS) is scheduled today, following a request from four Serbian representatives on the 11-member board. The board includes five members from Gazprom Neft and two from Gazprom. The meeting aims to have the majority owner clarify how the company will operate under U.S. sanctions and whether any changes to ownership or management structure are being considered to address the crisis and protect the interests of Serbia and nearly 13,000 employees.
Concerns also exist that a halt in financial transactions could trigger obligations to foreign creditors.
Sanctions against NIS implemented
NIS announced that the special license issued by the U.S. Department of the Treasury, which allowed uninterrupted operations, has not been renewed, marking the start of U.S. sanctions against the company.
The National Bank of Serbia (NBS) stated that despite sanctions and the possibility that foreign card systems may block payments at NIS points of sale, Serbian citizens and businesses can continue using NBS-issued payment instruments, including DinaCard and instant payment tools IPS Scan and IPS Show available in mobile banking apps.
The Adriatic Pipeline (JANAF) has suspended operations with NIS due to the absence of a license required for continued crude oil transport, ceasing contractual activities as of October 8.
The U.S. sanctions on NIS are expected to cost Croatia approximately 18 million euros if maintained through the end of 2025.
Originally set to take effect on October 1, the sanctions were delayed for eight days after negotiations. Previously, on August 26, the U.S. Treasury issued a special license allowing NIS to continue operations until September 26, 2025. This was the sixth temporary license granted by the Office of Foreign Assets Control (OFAC) to delay full sanctions enforcement.
The U.S. first announced sanctions on NIS in December 2024 due to Russian ownership, initially scheduled to take effect on February 28, but postponed by 30 days.
