US administration extends NIS license, ensuring refinery operations for another month

The US Office of Foreign Assets Control (OFAC) has extended the operational license for Naftna Industrija Srbije (NIS) until September 30, providing a temporary reprieve for the Serbian oil company. This extension ensures the continued supply of crude oil to the Pančevo refinery through the Adriatic Oil Pipeline (Janaf) and other channels, allowing for uninterrupted operations for another month.

"The extended license allows us to continue supplies, while we simultaneously work on a long-term solution for NIS," stated Serbian Minister of Mining and Energy Dubravka Đedović Handanović. She emphasized that the priority is to ensure sufficient fuel for citizens and the economy, maintaining Serbia's energy security. The Pančevo refinery increased its processing capacity in August to approximately 13,000 tons per day to meet heightened demand, particularly during the harvest season, and with import options limited by low Danube water levels.

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The extended license allows us to continue supplies, while we simultaneously work on a long-term solution for NIS.

The uncertainty surrounding NIS has been ongoing for over 18 months. The US administration had previously extended licenses that also permitted negotiations between Hungary's MOL and Russia's Gazpromneft regarding the sale of Gazpromneft's majority stake in NIS. Washington imposed sanctions on the Russian energy sector in early 2025, which include NIS due to Gazpromneft's 56.15% ownership.

On June 16, the Serbian government signed a shareholders' agreement with MOL concerning the future management of NIS. This agreement, contingent on MOL successfully acquiring Gazpromneft's stake, would make MOL the majority owner. However, a prerequisite is OFAC's approval of the MOL-Gazpromneft deal for the change of ownership, which has not yet been processed by the US financial administration. OFAC had previously extended MOL's license to negotiate with Gazpromneft until August 28.

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Without a license to operate NIS, we would not be able to meet demand.