Panic in Europe as entire country faces energy collapse over Russian oil | World | News
Serbia has suspended operations at its NIS refinery due to a lack of crude oil supplies and faces a race against time to secure fuel for the winter. The Balkan country has been scrambling to find alternative energy sources since the US Treasury began imposing sanctions on Russia’s oil sector in January.
The sanctions hit NIS, which is majority-owned by Russian Gazprom Neft and Gazprom. Belgrade was repeatedly granted exemptions before the sanctions came into effect in October. At this point, banks stopped processing the refinery’s payments and Croatia’s JANAF pipeline also stopped shipping crude oil to the refinery.
Serbian president Aleksandar Vučić claimed on Monday that the refinery was still operating but at a low level and had enough reserves to supply the domestic market.
However, the refinery had to stop its operations on Tuesday due to a lack of crude oil, Belgrade media channel NOVA.RS TV reported.
A source speaking to the channel said that the country claimed to the government that the refinery did not have any fuel reserves.
The NIS refinery is of critical importance for Serbia as it is the country’s only oil processing facility. It plays a vital role in powering Serbia’s transportation, industry and homes.
The oil depot provides more than four-fifths of the nation’s gasoline and diesel and nearly all its aviation and heavy fuel.
Serbia’s president said Monday that his government is trying to get the United States to grant Belgrade a license to continue its operations.
“We were hoping and expecting to get this license yesterday,” he said in a televised address to the nation.
“However, from numerous conversations with various American partners last night and after midnight Serbian time, we understood that there are still things they want to hear, things they want to see, things they want to receive, so that they can and possibly make a positive decision on granting business licenses for the next 45 or 60 day period.”
Gazprom Neft holds 44.9% of NIS, while Gazprom GAZP.MM holds 11.3%. 29.9% of Serbia, the rest is in the hands of small shareholders.
The White House wants Russia to withdraw completely from the NIS and has given the company’s owners three months to find a buyer for the Kremlin shares.
