Serbian President Aleksandar Vučić has revealed that the US will soon impose sanctions on the Oil Industry of Serbia (NIS).
"In a few days, the United States of America will impose full sanctions against the Oil Industry of Serbia (NIS) due to Russian ownership," Vučić said last night on Serbian television media.
The Oil Industry of Serbia (NIS), whose majority shares are owned by Russian companies Gazprom Neft and Gazprom, is Serbia's sole supplier of gas and the owner of both pipelines that transport gas from Russia to Serbia.
"The British will also impose sanctions, but that means everyone. This is probably one of the most serious news," President Vučić said during an interview on the pro-government channel Informer, warning that the sanctions could come into effect from January 1, 2025.
Vučić said that "this opens up problems with Russian friends for everything, from political ones to everything else."
"Terrible situation. In any case, we don't know how much time they will give us. It can't be done from today. We have to see what it means and how long it will last. So, will the share, can it be reduced below 50% of Russian ownership so that we can negotiate with the Russians - I don't know. They (the Russians) have 56 or something (ownership), so that we can buy that share, and then are we allowed or I don't know what they mean, so let's start talks with the Russians. We also talked about the gas arrangement," Vučić said.
Vladimir Putin's friend said that "Serbia will find a solution and that they should talk to the Americans and the Russians."
"All gas and oil reserves in Serbia have been exhausted. And now, no matter how much we buy, we have to pay a higher price. Nobody knows exactly how, why, nor does it matter. A much higher price. My only question is where we will find the money. Well, the state does not have to borrow. There is something worse than borrowing, and that is the deficit," Vučić said.
According to him, this is all about not imposing sanctions on Russia, following the military aggression in Ukraine in February 2022.
"I think this is part of the broader geopolitical pressure on Russia," said President Vučić, emphasizing that sanctions against NIS would be a serious blow to Serbia, which is negotiating a new gas supply agreement with Russia, as the current agreement expires in March 2025.
Vučić has already mentioned the "possibility of purchase", but according to him this is not a long-term solution.
"This is a serious problem. At this moment we can give a billion, which is a lot of money, but it is not a long-term solution. It is a difficult decision. This decision is calculated (by the Americans) to force us to impose sanctions on the Russians... In our country, the only important large Russian company is NIS, majority owned. NIS even today fills about 9 percent of the budget," he said.
Voice of America in Serbian asked the US Department of State and the Treasury Department for comment regarding the Serbian president's claims, but there was no immediate response.
Serbia, which is officially seeking membership in the European Union, maintains close relations with Moscow and has refused to join sanctions against Russia over its aggression in Ukraine.