The Petroleum Industry of Serbia (NIS) has officially submitted a request for the postponement of sanctions to the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury, the Ministry of Mining and Energy announced.
The statement notes that the request, supported by the governments of Serbia and Hungary, pertains to obtaining general or specific licenses that would allow NIS to maintain its operations while a suitable solution for ownership structure and management is sought. The goal is to ensure that the company, which is of regional and strategic importance for energy stability, continues to operate.
The Serbian government supports the request for such a permit for NIS, as sanctions would undermine the company’s ability to supply the citizens of Serbia with oil and petroleum products.
“Given the importance of NIS for both the Serbian and regional economies, we urgently request OFAC to consider immediate relief in the form of a postponement of sanctions for at least 90 days, while a sustainable solution leading to the lifting of sanctions is explored,” the statement said.
The Ministry of Mining and Energy recalls that U.S. officials have repeatedly emphasized that the sanctions are not directed against Serbia or its citizens.
“In line with this, we hope for a constructive continuation of the dialogue to avoid jeopardizing Serbia’s energy stability, as well as that of the entire region,” the statement added.
More:
- EU Helps Moldova Address Energy Crisis
- Bulgaria and the USA Expand Cooperation on Building a New Nuclear Power Plant in Kozloduy
- NE Krško 2: Financial Estimates Ahead of the Consultative Referendum
NIS in 2024: Increased Investments, Weaker Financial Results, but Stable Operations
In the last quarter of 2024, the main priority for NIS was maintaining stability in the domestic petroleum derivatives market and completing one of the largest investment cycles in the company’s history. A total of 53.2 billion dinars was invested in development projects, marking a 36 percent increase compared to 2023, according to the company’s Q4 2024 report.
Despite the major overhaul of the Pančevo Oil Refinery and unfavorable market conditions, NIS achieved stable operational results. Crude oil and gas production in the fourth quarter reached 290 thousand conditional tons, while crude oil refining volumes increased by 5 percent compared to the previous year. Sales of petroleum products grew by 7 percent.
On the other hand, financial indicators declined compared to 2023. NIS Group’s net profit amounted to 10.1 billion dinars, a 77 percent decrease, while EBITDA fell by 35 percent. Tax and other public revenue obligations increased by 7 percent, reaching 260.5 billion dinars.
During 2024, NIS successfully completed its first corporate bond issuance, further diversifying its sources of financing and reducing bank exposure. Additionally, the company continued its energy transition efforts by installing solar power plants at 45 gas stations and at the “Jazak” water production facility. As part of the “Together for the Community” program, NIS supported 40 solar power plant construction projects across 13 cities and municipalities.
Energy portal
