Potential European and Asian investors will speak about a takeover with Russian owners of Serbian oil refiner and service station chain operator NIS, President of Serbia Aleksandar Vučić said. If the talks fail, Serbia “should offer a better price… whatever it costs” to avoid “nationalization, confiscation and property usurpation,” he stressed, but also warned that “the refinery must work and the oil industry must work.”

Minister of Mining and Energy Dubravka Đedović Handanović said she doesn’t see a way to overcome the blow from US sanctions against NIS and added that she is prepared to resign.

The Government of Serbia held an emergency meeting as the sanctions that the United States imposed on NIS, the owner of the country’s sole oil refinery and the largest service station chain, are threatening to cripple the economy. Since October 9, the company has been unable to draw oil through the Croatian Jadranski naftovod (JANAF) pipeline.

Gazprom is the majority owner of NIS, also known as Naftna industrija Srbije – oil industry of Serbia. Gazprom Neft, which is the one actually under direct US sanctions, has 44.5%, while Intelligence, the Russian state-controlled gas giant’s other subsidiary, holds an 11.3% stake. Serbia owns 29.9%.

A decision must be made within seven days, according to President of Serbia Aleksandar Vučić, who attended the cabinet session. He revealed that potential European and Asian partners are about to speak with the Russian side about a takeover.

If a deal doesn’t come through, Serbia “should offer a better price,” even if it would need to pay for it on its own, he underscored and pointed out that the authorities have been planning a “special operation” for financing. “If we don’t have another solution, whatever it costs, as high as it costs, we will find the money,” the president claimed. He went on to say Serbia is ready to “overpay” to take the company back.

Reserves won’t matter as soon as the first delays become evident

Vučić told relevant ministers to obtain additional quantities of diesel, for EUR 40 million, gasoline, for EUR 60 million and fuel oil, in the meantime.

“I want to avoid nationalization, confiscation and property usurpation at any cost,” like what “the Bulgarians and the Romanians did,” the president asserted. Nevertheless, he warned, “the refinery must work and the oil industry must work.”

Fuel reserves are “full to the brink” and the country won’t feel any consequences for more than thirty days from now, in the president’s view, who urged against panic.

Vučić: Without any fault of our own, we were crushed like grass in a collision of elephants

“However, these reserves won’t save us the very second when they see that we have a delay for five trucks, when people don’t get bread in the morning in two bakeries. The destruction or closure of the refinery, the lack of fuel, pushes us to a total disaster,” Vučić stated.

The army will cede diesel to the healthcare sector if necessary, he added.

The situation with the US has nothing to do with Serbia, Vučić said. “It has to do with their relations with the Russians and geopolitics. Without any fault of our own, we were crushed like grass in a collision of elephants,” in the words of the head of state.

Vučić also highlighted the fact that Serbian financial institutions are at risk because of the government’s “relations with the Russians.” He said he asked US officials to allow seven to eight more days and that they accepted, though unofficially.

No choice but to act now, ministers warn

There is “no more time,” according to Minister of Mining and Energy Dubravka Đedović Handanović. Serbia must take necessary measures, she warned.

“Leading the energy sector in a situation where the oil industry is sanctioned is almost impossible. I am ready even to submit my resignation, because I don’t see a way to overcome this situation. Because, simply, there is no life for us without the refinery in Pančevo. It is vital for our citizens, for our companies, for our healthcare, for our police, for our schools, for our kindergartens. Because without fuel, simply, maybe even bakeries can’t get bread every day. Just to be aware of the complexity of the situation we are in. We waited for a long time. We were very patient. We were very loyal. We spoke multiple times with our Russian partners,” she stated.

Serbia has no choice but to act, said First Deputy Prime Minister and Minister of Finance Siniša Mali.

“This situation with NIS jeopardizes everything for us. But absolutely everything. Our gas. Our stability. Our credit rating,” he stressed and added that it also impacts attracting foreign investors.