U.S. extends NIS operating license by 30 days amid energy crisis

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has granted Naftna Industrija Srbije (NIS) a 30-day extension on its operating license, pushing the deadline to July 31. This move ensures that NIS can continue its operations, including the processing of crude oil at its refinery in Pančevo, a critical function amid the ongoing global energy crisis. Serbia's Minister of Mining and Energy, Dubravka Đedović Handanović, announced the extension via Instagram, highlighting its significance for the country's energy supply.

This renewed license is expected to allow Jadranski naftovod (Janaf), the Croatian oil transport company, to continue supplying crude oil to the NIS refinery without interruption, following previous practices. NIS, with a 56.15 percent stake held by Russia's Gazprom Neft, is subject to U.S. sanctions imposed on the Russian energy sector in early 2025. The company had submitted a new request for a license extension on June 26, emphasizing the necessity of continued operations for a stable supply of oil derivatives to the Serbian market.

Furthermore, the extension is a prerequisite for the potential acquisition of a majority stake in NIS by the MOL Group. MOL had previously received OFAC authorization to continue negotiations on this acquisition until July 1. A shareholder agreement signed on June 16 between the MOL Group and the Serbian government outlines future management of NIS, contingent on MOL and Gazprom Neft reaching a final agreement and receiving OFAC approval. The agreement also includes provisions for Serbia to acquire an additional five percent of NIS shares and guarantees the Pančevo refinery's operation for at least 10 years.