U.S. Grants Temporary Operating Licence to Serbia’s NIS, Pancevo Refinery Set to Resume Production

BY COMFORT OGBONNA

The United States has granted Serbia’s majority Russian-owned oil refiner NIS a temporary operating licence valid until January 23, allowing the company to restart production after a 36-day shutdown, Serbia’s energy minister confirmed on Wednesday.

The decision clears the way for the resumption of operations at the Pancevo refinery, a critical facility for Serbia’s fuel supply.

The licence was issued by the U.S. Treasury Department’s Office of Foreign Assets Control, which had imposed sanctions on NIS in October as part of broader measures targeting Russia’s energy sector. Since January, Washington has granted a series of waivers linked to the company, reflecting ongoing efforts to balance sanctions enforcement with regional energy stability.

Serbia’s energy minister, Dubravka Djedovic Handanovic, welcomed the development, describing it as positive news to close out the year. She said the approval enables NIS to operate until January 23 and confirms that the Pancevo refinery will resume work after more than a month of inactivity. The shutdown had followed the suspension of crude oil supplies through Croatia’s JANAF pipeline, which had halted refinery operations entirely.

JANAF later confirmed that it had also received authorisation permitting its involvement in activities necessary for the transport of oil to NIS until January 23, 2026. This approval is expected to restore crude flows to the refinery and stabilise supply chains disrupted by the sanctions.

In a related move last week, OFAC extended the deadline for NIS until March 24 to negotiate the sale of its Russian owner’s stake, signaling continued pressure for changes in the company’s ownership structure.

NIS is partially owned by Russia’s Gazprom, which holds an 11.3% stake, while its sanctioned oil arm Gazprom Neft controls 44.9%. The Serbian government owns 29.9%, with the remaining shares held by small investors and company employees.

Serbian President Aleksandar Vucic has said that Gazprom is in discussions with Hungary’s MOL over a potential sale of its majority stake in NIS. Any such deal could reshape the company’s ownership and potentially ease future sanctions-related risks, while ensuring continued operation of one of Serbia’s most strategic energy assets.