Serbia's Russian-owned NIS refiner buys first crude since U.S. sanctions waiver
- NIS facing U.S. sanctions over Russian ownership
- Washington granted waiver through January 23
- Frozen crude imports had created concerns over fuel supplies
NIS, Serbia's Russian-owned oil company, said on Friday that it had imported the first shipments of crude oil needed to restart the country's sole refinery after securing a U.S. sanctions waiver.
Washington imposed sanctions on NIS in October as part of broader measures targeting Russia's energy sector over Moscow's war in Ukraine. But it granted the company a temporary operating license (learn more) until January 23, giving the company a small window to snap up international cargoes as winter weather hits.
"It is expected that ... crude oil will be delivered to the Pancevo Oil Refinery during the next week, while the company plans to import additional quantities," NIS said in a statement.
Concerns over fuel supplies as winter hits. The oil will be delivered via Croatia's Adriatic Pipeline (JANAF), the only route for piped crude into landlocked Serbia, NIS said.
The first 85,000-metric-ton cargo is Iraqi Kirkuk crude oil already in storage at the Omisalj terminal in Croatia, a source with direct knowledge of the matter said.
NIS has also secured a smaller cargo of Libyan Es Sider crude for delivery later in January, the source added.
The two cargoes should allow the Pancevo refinery to run for at least nine days, assuming it was running at capacity, calculations showed. NIS declined to comment on those details.
JANAF said it was prepared to transport cargoes for the duration of the operating license.
While Serbia's government has said it has sufficient fuel stocks, the halt to crude deliveries resulting from the sanctions had raised public concerns over supplies.
Serbia's President Aleksandar Vucic said the NIS refinery will be operational on January 17 or 18. Production would begin on January 25 or 26, he said.
The U.S. has, meanwhile, given NIS until March 24 to negotiate the divestment of stakes held by Russia's Gazprom and its sanctioned oil unit, Gazprom Neft.
The Serbian government said it supports ongoing sale talks between the Russian owners and Hungary's MOL.
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