U.S. pushes Serbia to cut Russian ownership in oil industry to zero

The Serbian Oil Industry (NIS), included in the new package of U.S. sanctions targeting Russia’s energy sector, can only be exempt if Russian ownership in NIS is reduced to zero, stated James O’Brien, U.S. Assistant Secretary of State for Europe and Eurasia, CE Report quotes Kosova Press.

The U.S. Department of the Treasury announced sanctions on over 200 entities operating within Russia’s energy sector, including NIS.

Serbian President Aleksandar Vučić remarked that Serbia is facing "severe sanctions" but insisted the country did not cause them. The sole condition set by Washington is that "no money flows to Russia" from NIS, O’Brien emphasized in a statement to Radio Television of Serbia.

"We do not want Russia to manage this key company in Serbia. The only way to eliminate risk is for Russian ownership to be reduced to zero. That’s the position we’re entering this discussion with," O’Brien said.

He expressed confidence that Serbia would follow a path leading to “constructive ownership” of NIS and emphasized that this must be the “final outcome.”

In 2008, the Serbian government sold NIS to Russia’s Gazprom Neft. According to data from the Central Securities Registry, Gazprom Neft and Gazprom collectively hold 56.15% of the company, while Serbia owns 29.87%.