Fearful about oil sanctions, Serbia’s Vučić seeks support from EU leaders

Facing an imminent halt of the Gazprom-owned Serbian oil company NIS due to US sanctions, President Aleksandar Vučić met with EU leaders António Costa and Ursula von der Leyen in Brussels. “I don’t have such a strong fear regarding gas as I do about oil,” he revealed and said they spoke about the possibilities for importing derivatives from Romania, Bulgaria and other countries in the region. Costa and Von der Leyen urged Serbia to further align with the EU’s foreign and security policy.

Serbia hasn’t received a single drop of crude oil for two months, President Aleksandar Vučić noted as he addressed the press in Brussels after meeting European Council President António Costa and European Commission President Ursula von der Leyen. The country’s only refinery is run by NIS (Naftna industrija Srbije), which Russian state-owned Gazprom controls through its subsidiaries. Entirely stripped of oil supply since United States sanctions against the Serbian company kicked in, the facility recently ground to a halt.

There is apparently no progress in talks about the sale of Gazprom’s share. The authorities expect that Serbia will have to freeze NIS completely in the next few days, for its financial system to avoid secondary sanctions.

NIS and Lukoil together hold over one quarter of fuel stations in Serbia

The company, which is also present in some neighboring countries, supplied 80% of derivatives in the domestic market. Moreover, one in five fuel stations in Serbia is branded NIS or Gazprom. They account for more than a quarter together with Russia-based Lukoil. It is also under US sanctions, though able to operate almost until the end of April.

Vučić: It will only get harder each coming day

Vučić said he and Costa and Von der Leyen spoke about the key energy concerns that Serbia is facing. “It’s not easy for us already today, and it will only get harder each coming day… I don’t have such a strong fear regarding gas as I do about oil. Of course I am fearful, as a responsible man. I am always fearful, but we sought solutions and worked on it and I hope we will have EU’s support in these very important matters,” he stated.

Namely, Serbia is dependent on Russian gas and its transit through Bulgaria. The fuel comes via the Balkan Stream pipeline, an extension of TurkStream. If NIS is nationalized, the Kremlin could slash or even end the supply in case. Serbia is buying gas under short-term arrangements since May. The EU has launched measures to end most of the remaining supply from Russia next year.

According to the president, possibilities were discussed at the meeting of importing oil derivatives from Romania, Bulgaria and other countries in the region.

There was also word about where Serbia would build gas and oil pipelines, Vučić added and hinted at projects for liquid fuel pipelines as well. He mentioned the possibility of transporting diesel that way from Constanța, Romania’s Black Sea port city. Near it is the Petromidia refinery, owned by Rompetrol, a 100% subsidiary of Kazakhstan’s state-owned KazMunayGas (KMG).

Vučić said he spoke with the two top officials about the plan for a gas interconnector with North Macedonia.

Europe has consistently shown solidarity with Serbia, according to both top officials

Costa and Von der Leyen issued short and essentially identical messages after the meeting with the Serbian president. They highlighted the importance of accelerating reforms in the country, particularly with regard to the rule of law and media freedom.

“We stressed that enlargement is a geostrategic imperative and the need for Serbia to further align with the EU’s foreign and security policy. We also welcomed Serbia’s steps to diversify its energy sources and routes and to reduce dependency on Russia, whose unreliability has been repeatedly demonstrated. Europe has consistently shown solidarity with Serbia through major investments in energy infrastructure and support to vulnerable households,” they wrote on social media.

Two months ago, Von der Leyen said the EU is a guarantee that Serbian families would be safe and warm in winter and that the country can enter its joint gas procurement mechanism.