Serbia faces oil refinery shutdown as US sanctions deadline looms

Serbia’s Oil Industry Threatened by Sanctions Deadline

Serbian President Aleksandar Vučić has warned that the country could face a severe energy crisis if its main oil refinery is forced to halt operations due to U.S. sanctions. The Pancevo refinery, one of Serbia’s largest industrial sites, is operated by the Petroleum Industry of Serbia (NIS), a company majority-owned by Russia’s energy giant Gazprom Neft.

Pressure Over U.S. Sanctions

The potential shutdown is linked to American sanctions imposed on Russian entities following Moscow’s invasion of Ukraine. To keep the refinery running, Serbian authorities are seeking a special license from U.S. sanctions regulators. According to Vučić, without such authorization, NIS will be unable to legally purchase crude oil or conduct transactions through global financial systems.

“We are doing everything we can to obtain that license,” Vučić stated during a press conference in Belgrade. “If we fail, Serbia will face one of the most serious problems in decades.”

Geopolitical Balancing Act

Serbia, a candidate for European Union membership, has refused to join Western sanctions against Russia. This stance has drawn criticism from both Brussels and Washington. However, Belgrade argues that its heavy economic dependence on Russian energy leaves it with few alternatives in the short term.

Economic and Social Consequences

Analysts warn that a refinery shutdown could lead to fuel shortages, price surges, and a ripple effect across Serbia’s economy. The Pancevo facility supplies the majority of the country’s oil-based energy needs and provides thousands of jobs. Authorities are exploring emergency import routes and stockpiling petroleum reserves as a precaution.

“We can survive a few weeks with current reserves,” an unnamed government energy adviser told local media, “but not much longer without new shipments.”

Outlook

The coming weeks will decide whether Serbia secures a sanctions waiver or faces a widespread energy disruption. Western diplomats have suggested that any exemption will depend on Belgrade’s willingness to align more closely with EU foreign policy toward Russia.

Author’s summary:
Serbia risks severe energy shortages as its main oil refinery nears shutdown over U.S. sanctions tied to Russian ownership, testing Belgrade’s diplomatic balance between the West and Moscow.

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Euronews Euronews — 2025-11-26

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