Vucic says new U.S. energy sanctions on Gazprom assets necessitate ‘an arrangement with the Russians’ to resolve fate of Serbia’s sole refiner

The U.S. Treasury Department has intensified sanctions against the Russian oil and gas companies Surgutneftegaz and Gazprom Neft. The new sweeping measures also apply to numerous subsidiaries and affiliated foreign entities, including Serbia’s sole refiner, Naftna Industrija Srbije (NIS), which Gazprom has developed extensively and has controlled through a majority stake since 2008. 

In an interview with Bloomberg, Serbian President Aleksandar Vucic called the new sanctions “very harsh.” “We’ll have to speak to the Russians to make an arrangement as soon as possible,” he added.

Under the terms of the U.S. sanctions, Serbia has 45 days (until February 25) to negotiate a “solution” for NIS and another 15 days for a possible payment. Vucic told Bloomberg that he doesn’t favor nationalization. “We’re not communists here. I don’t want to take anyone’s assets for free,” he told the news outlet.

Rosnefteflot (a subsidiary of Rosneft), Ingosstrakh, and AlfaStrakhovanie, which specialize in insuring maritime transportation — including oil and oil derivative shipments — were also sanctioned.