Šušnjar: Croatia prepared to buy oil company NIS in Serbia

Minister of Economy Ante Šušnjar has said that Croatia is prepared to acquire Russian-owned oil company NIS in Serbia, which came under US sanctions today. Croatian state-owned oil pipeline operator Jadranski naftovod (JANAF) relies heavily on deliveries to NIS, and Šušnjar believes the acquisition would benefit both Croatia and Serbia.

The US sanctions against the Serbia-based oil company took effect after nine months of delays. JANAF stated yesterday that it had a license to continue deliveries to NIS until October 15, but Minister of Economy Ante Šušnjar said today that everything from the terminals and the pipeline had already been transported and that there were no more deliveries to Serbia.

Šušnjar: Croatia’s plan to buy NIS is not aimed at dominating Serbia’s retail market

Asked about plans to buy NIS, Šušnjar said that Croatia is prepared to do so to protect JANAF, whose business has relied on ties with NIS for the past 40 years. He emphasized that there is no intention to dominate Serbia’s retail market.

US sanctions against NIS will affect Croatia, Serbia, and BiH

According to Šušnjar, if Croatia were to take over NIS, it would ease the situation for both Croatia and Serbia. The sanctions also pose an additional challenge for Bosnia and Herzegovina, given that 20% of the country’s oil derivatives market is supplied by NIS’ refinery in Pančevo, he noted.

Business with NIS accounts for more than 30% of JANAF’s revenue, and suspending deliveries until the end of this year alone would cost Croatia around EUR 18 million, according to Stjepan Adanić, chairman of JANAF’s management board.

The US imposed sanctions on Russian state-owned Gazprom Neft, which until recently held a 50% stake in NIS, with its parent company Gazprom controlling a further 6.2%. After a reshuffle, Gazprom Neft now owns 44.9%, and Intelligence, a firm within Gazprom’s system, 11.3% of NIS. Serbia’s stake is 29.9%.