Serbia’s state-controlled oil company, NIS, faces potential U.S. sanctions due to Russian ownership, posing significant risks for both the company and the national budget. In 2024, NIS contributed over €2 billion in taxes, nearly 12% of Serbia’s total budget revenues, primarily from excise duties, VAT, corporate taxes, and other levies.
Experts warn that sanctions could lead to higher fuel prices, reduced supply, and operational challenges, directly affecting consumers. Financial pressures on NIS would also reduce corporate tax revenue for the state. However, revenues from VAT and excises are expected to continue flowing, as other companies may offset some market gaps.
U.S. sanctions have been repeatedly delayed, with the latest extension allowing NIS to operate without full restrictions until October 8, 2025. Serbian President Aleksandar Vučić’s diplomatic efforts were credited with securing this postponement. NIS management emphasized that the company will adapt to minimize impacts on employees and consumers, continuing operations under the temporary license.
The company has also submitted a request for removal from the U.S. Specially Designated Nationals (SDN) list.
