AP: US imposed sanctions on oil supplier in Serbia

The United States has imposed sanctions on the main oil supplier for Serbia, which is controlled by Russia.

Serbia is almost entirely dependent on Russian gas and oil supplies, which it receives mainly pipelines from Croatia and another neighbouring countries. Gas is then distributed by Petroleum manufacture of Serbia (NIS), the majority owner of which is Russian state-owned oil monopoly Gazprom Neft.

President Alexandar Vucic stated that sanctions would have "extraordinarily serious consequences" in many respects: "This is something that will affect all citizen."

NIS reported on Thursday that he failed to get another postponement of US sanctions, which could jeopardise his efforts to safe oil and gas supplies in the long term.

‘The peculiar licence issued by the U.S. Treasury Department, which allows unlimited operating activity, has not yet been renewed,’ NIS informed in a statement. She added that she had accumulated adequate supplies to keep business for customers for a long time.

The U.S. Treasury Department's abroad Asset Control Office imposed sanctions on the Russian oil sector on January 10 and set Gazprom Neft a deadline to retreat from the NIS stake, which the Russians did not do.

Analysts say Serbia is the victim of a game between Russia and the United States.

"If the Russians had agreed to sale their shares, there would have been no sanctions," said Alexandar Milosevic, Serbian economical analyst.

“The Russians, however, do not want to sale their shares. They would alternatively bear all the financial consequences of sanctions than show weakness and sale NIS," he added. "So this is simply a political game between Russia and the United States, and Serbia is fundamentally a tiny part of it".

Source:AP

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