US Sanctions Threaten Shutdown of Serbia’s Only Oil Refinery

Serbia’s only oil refinery, Pancevo, which supplies around 80 percent of the country’s fuel, faces a possible shutdown as early as Tuesday following US sanctions on its majority Russian-owned operator, the Petroleum Industry of Serbia (NIS). The measures, implemented on October 9 as part of Washington’s crackdown on Russia’s energy sector after its 2022 invasion of Ukraine, have left Belgrade urgently seeking solutions to avert an energy crisis.

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Serbia’s government says fuel reserves have been stockpiled and import contracts arranged for December, but experts warn this will not fully replace domestic production. Economist Goran Radosavljevic told AFP that imports can only “prolong the agony” and warned NIS could face bankruptcy if operations halt. Officials are now monitoring the situation closely as the shutdown deadline approaches.