Serbia sets up new body to secure gas and oil supply amid potential US sanctions

Belgrade, January 5, 2025 – The Serbian government has set up a new coordinating body to ensure its gas and oil supply is stable. This comes as the country faces the possibility of U.S. sanctions against its state-owned oil company, NIS, due to its links with Russian energy giant Gazprom.

The new body will oversee two key areas: monitoring U.S. Treasury activities and managing negotiations to secure natural gas from Russia. This move aims to shield Serbia from any energy supply disruptions should sanctions be imposed.

Serbian President Aleksandar Vučić confirmed that he expects the U.S. to sanction NIS by January 10-13. Since 2008, Gazprom has held a majority stake in NIS, while the Serbian government owns almost 30% of the company.

Vučić also shared that U.S. officials, including Undersecretary of State for Economic Growth, Jose Fernandez, have confirmed that sanctions on NIS are likely. The U.S. State Department stated that it cannot confirm specific sanctions but remains focused on cutting off revenue streams that support Russia’s war in Ukraine.

Despite efforts to diversify its energy sources after the war in Ukraine began, Serbia still depends heavily on Russian energy. This reliance has been one of the reasons Serbia has resisted imposing sanctions on Russia, despite strong Western pressure.

The creation of the coordinating body shows Serbia’s commitment to securing its energy needs while navigating its complex relationship with both Moscow and the West.

NIS Background: NIS is Serbia’s largest oil company, responsible for refining and distributing oil and gas across the country. It has been a key player in Serbia’s energy sector, but its Russian ownership has drawn international scrutiny, especially amid rising tensions between Russia and the West.