The Serbian Oil Industry (NIS) reported today that the US Treasury Department has issued a new special license that extends the grace period for full sanctions against the company until April 28th.

In their announcement, they expressed gratitude to the Government of Serbia and other institutions both domestically and internationally that advocated for this request to the US Treasury Department.

NIS confirmed its commitment to adhering to the regulations in Serbia and elsewhere, asserting that its operations have not contributed to the sanctions, which threaten its business and the social stability of over 13,000 employees.

The company stated that the new license permits it to maintain its activities, contracts, and other agreements involving NIS or its subsidiaries.

Furthermore, it allows for the execution of all transactions related to NIS and its subsidiaries aimed at fulfilling contracts.

The license also permits “the alienation or transfer, or facilitation of the alienation or transfer of debt or equity issued or guaranteed by NIS or its subsidiaries (covered debt or equity) to a non-US person.”

Additionally, the announcement indicated that the license enables official business for diplomatic or consular missions outside the Russian Federation that involve NIS or its subsidiaries.

“NIS is prepared to continue its consistent collaboration with the US Treasury Department regarding the request to remove the company from the SDN sanctions list (Specifically Designated Nationals),” it stated.

“Official confirmation has arrived”

Serbian Minister of Mining and Energy Dubravka Đedović Handanović previously confirmed that the US had officially delayed sanctions against NIS until April 28th.

“We should make the most of this reprieve to contract, deliver, and pay for as much oil as possible,” she told Radio Television of Serbia. She highlighted that NIS has received a new license from the US, enabling it to continue its operations and supply the market, allowing business dealings with American companies, financial institutions, and citizens.

“The sanctions on NIS have already had an impact, as some customers have begun sourcing from other suppliers,” Đedović Handanović noted.

She added that the Serbian Government had anticipated this postponement but was also prepared for the possibility of the sanctions being enacted.

“We endeavored to illustrate and convey how vital NIS is for our citizens, the economy, and the normal functioning of all essential societal functions. We were supported by Hungary, just as we were previously,” she shared.

She emphasized the significant fact that since the new administration under US President Donald Trump took office, diplomatic relations between Belgrade and Washington have seen a positive trajectory.

According to the minister, Serbia’s mandatory oil reserves have been elevated to the highest possible level, exceeding 52 percent.

“Regarding total reserves, which include mandatory, commodity, and commercial operational reserves, they now reflect an average consumption for up to 100 days,” she explained.

She reiterated that the long-term goal for NIS is straightforward: to have it removed from the US sanctions list.

“The Biden administration placed NIS on the sanctions list as part of the broader American effort against Russian companies, along with 300 firms from 30 countries, at the very beginning of its term. NIS has filed a request for removal from the sanctions list, providing reasons for this request. However, the delisting process is complex. It is crucial that we maintain dialogue with the new American administration, as ultimately, the decision rests with the US Congress,” Đedović Handanović stated.

She indicated that Serbian President Aleksandar Vučić had an open conversation with Russian President Vladimir Putin regarding sanctions against NIS.

“We find ourselves between two great powers that are currently engaged in discussions about peace and broader economic and energy interests, leading me to believe in a sustainable solution,” Đedović Handanović mentioned during her interview with Radio Television of Serbia.

This week, the Serbian government submitted a letter to the US administration supporting NIS’s request for an additional delay of sanctions.

The US had similarly postponed the implementation of sanctions for another month at the end of February.

In January, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) included NIS on its sanctions list due to its Russian ownership.

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