The Serbian oil company NIS (Naftna Industrija Srbije) may soon face U.S. sanctions due to Russian ownership, potentially creating challenges for both consumers and the state, given that NIS is a major taxpayer. In 2024 alone, NIS contributed over €2 billion in various taxes to the Serbian budget.
Experts warn that sanctions may not have an immediate effect, but after a few months, as oil reserves deplete, fuel prices could rise, availability may drop, and payment issues at gas stations are possible. If NIS faces financial difficulties, it could also affect state revenue, since a significant portion of Serbia’s budget comes from the company.
According to NIS’s 2024 financial report, the company recorded revenues of around 408 billion dinars (€3.5 billion) and a net profit of slightly over 10 billion dinars (€85 million). Its tax contributions include:
- Payroll taxes and contributions for over 5,000 employees: 2.5 billion dinars (€21 million)
- VAT: 33 billion dinars (€282 million)
- Corporate income tax: 4.19 billion dinars (€35.8 million)
- Commodity reserve fee: 7.6 billion dinars (€65 million)
- Energy efficiency fee: 440 million dinars (€3.7 million)
- Customs duties: 2 billion dinars (€16.9 million)
- Mining rent: 1.8 billion dinars (€15 million)
- Other taxes: 1.5 billion dinars (€12.9 million)
- Excise duties: 185.8 billion dinars (€1.6 billion)
Subsidiaries of NIS contributed an additional 5.84 billion dinars (≈€50 million). In total, NIS and its subsidiaries paid 244.7 billion dinars (≈€2.09 billion) to the state in 2024, nearly 12% of Serbia’s total budget revenue.
If sanctions restrict NIS’s trade or international contracts, the company’s revenues and profits would decline, reducing corporate tax payments to the state. However, some VAT and excise revenues may still be recovered through other domestic companies, assuming the government does not lower fuel excise taxes amid potential price pressures.
U.S. sanctions were initially imposed in early 2025 due to Russian ownership but have been repeatedly delayed. President Aleksandar Vučić recently stated that sanctions could take effect from October 1, 2025, though the U.S. Treasury has issued temporary licenses allowing NIS to continue operations, recently extended by eight days.
