BELGRADE (Reuters) -Serbia’s Russian-owned oil company NIS said on Friday it had secured sufficient stocks of crude oil and oil derivatives before U.S. sanctions kick in on October 1.
NIS was seeking to calm markets after Serbian President Aleksandar Vucic announced on Thursday the impending imposition of U.S. sanctions, threatening crude supplies to the Balkan country, following a series of waivers since January.
NIS operates Serbia’s only oil refinery and is crucial to its energy security. According to one trader, it supplies around 80% of the country’s gasoline and diesel, and 90% or more of jet fuel and heavy fuel oil.
The measures are part of the U.S. sanctions on Russia’s oil sector announced on January 10.
NIS is majority-owned by Russia’s Gazprom Neft (SIBN.MM) and Gazprom (GAZP.MM) and as such is one of Russia’s last remaining oil assets in Europe.
“Stability in the domestic market and social stability of employees remain our priority,” NIS said in a statement. “The company has secured sufficient stocks of crude oil as well as of oil derivatives to supply the market at the moment.”
It did not say how many stocks it had or how long they would last.
Earlier this year, Reuters reported that NIS was struggling to buy oil from traders abroad, while at home its former clients are seeking alternative fuel suppliers due to the pending sanctions.
Gazprom Neft owns a 44.9% stake, Gazprom’s unit 11.3% and the Serbian government 29.9%.
Gazprom Neft transferred a stake of around 5.15% in NIS to Gazprom on February 26 in an attempt to ward off U.S. sanctions – a move that appears not to have worked.
The Pancevo facility has an annual capacity of 4.8 million tons and covers most of Serbia’s needs, and sanctions could jeopardize its supply of crude via Croatia’s Janaf pipeline.
(Reporting by Ivana SekularacEditing by Edward McAllister and Gareth Jones)
