Serbia's Energy Dependency on Russia Faces Challenges Amid US Sanctions

Wed Nov 12 2025 12:58:03 GMT+0200 (Eastern European Standard Time)

Serbia grapples with consequences of US sanctions against its oil industry amidst rising tensions with Russia over energy supplies.

Serbia is caught in a challenging situation as US sanctions against NIS, its national oil company largely owned by Russian entities, come into effect. Despite its deep-rooted ties with Russia, Serbia's energy sector faces severe disruptions, prompting its government to seek solutions to maintain fuel supply and avoid a national crisis. Serbian President Vucic's relationship with Moscow is under strain as the country seeks to balance its energy needs with geopolitical realities.

An impasse over Russian oil and imminent US sanctions has placed Serbia in a difficult position with its historical ally, Moscow. The issue at hand stems primarily from the ownership of Serbia's national oil company, NIS, which is more than 50% owned by Russia's Gazprom and Gazprom Neft.

With US sanctions, NIS has faced immediate repercussions, including the inability to accept payments via major credit card companies like Visa and Mastercard. This has resulted in a reliance on cash transactions at petrol stations, greatly affecting consumers.

The war in Ukraine has exacerbated these challenges, compelling Serbia’s government to navigate increasing tensions regarding energy supplies and arms trade without jeopardizing its longstanding relationships.

In a bid to circumvent the sanctions, Serbian Energy Minister Dubravka Djedovic Handanovic has indicated that Russian stakeholders may be willing to transfer control of NIS to a third party. However, with December looming, time is of the essence.

As Serbia looks towards potential solutions that may include nationalization, the stakes remain high. The country relies heavily on NIS for petroleum products, yet geopolitical tensions are complicating its energy future. With gas supply agreements also expiring, Serbian President Aleksandar Vucic is left managing the fallout of these critical decisions.