The United States Treasury has issued a temporary licence that will allow Serbia’s national oil operator NIS to resume operations until 23 January, a move that promises to relieve a deepening fuel shortage and restore stability to the domestic energy market.
The Office of Foreign Assets Control (OFAC) granted the authorisation on 31 December, Serbian Energy Minister Dubravka Djedovic Handanovic confirmed. The licence covers the Pancevo refinery, the country’s only crude refinery, which had been idle since early December after Washington imposed sanctions on NIS in October.
NIS operates the Pancevo site and is 45% owned by Gazprom Neft, a subsidiary of Russia’s Gazprom. Gazprom itself previously held an 11.3% stake but transferred that share to another Russian company in September 2025. The October sanctions required Russian shareholders to withdraw fully from NIS if the company was to resume trade with Western partners. Protracted negotiations over ownership changes left the refinery closed and forced Belgrade to draw down emergency fuel reserves.
Serbia energy security at stake
The closure of Pancevo had immediate economic and social repercussions. The refinery supplies roughly 80% of Serbia’s domestic fuel needs and contributes nearly 12% of national budget revenues. Its stoppage prompted urgent government measures to ensure short-term supply, but authorities warned that prolonged disruption would hit transport, industry and public finances.
By securing the OFAC licence, Serbian officials say they have a breathing space to restart production and avoid wider market disruption. Minister Handanovic posted on social media that the permit will allow Pancevo to restart after 36 days offline and framed the development as a significant win for national energy security.
President Aleksandar Vucic also signalled the diplomatic effort behind the reprieve, describing the outcome as the result of intense negotiations and hinting at further positive political developments.
While the licence is a temporary measure rather than a permanent solution, it opens a window for talks over longer-term ownership arrangements. According to Serbia’s national broadcaster RTS, Hungary’s MOL is in discussions to acquire the Russian-held stakes in NIS. Hungarian Prime Minister Viktor Orban personally discussed the matter with President Vucic and engaged with US diplomatic officials on the same day the licence was issued.
Analysts say a transfer of Russian shares to a non-Russian investor would likely be the most straightforward path to remove sanctions-related obstacles. However, such transactions are complex and must satisfy both international legal requirements and commercial due diligence. The OFAC licence gives Serbia and potential buyers time to hammer out the terms without immediate supply disruption.
For Russia, the temporary US authorisation eases a politically sensitive situation: it prevents a public collapse of refinery operations in a European country that has maintained relatively close ties with Moscow. For Serbia, the outcome restores a critical industrial asset and provides time to secure a more stable ownership structure that can operate free of sanctions constraints.
Market watchers will be watching developments closely before the 23 January deadline. The licence reduces short-term risks but leaves open questions about the long-term ownership of NIS, the role of European buyers such as MOL, and how Washington will respond once negotiations conclude. For now, consumers in Serbia should see a gradual easing of supply pressures as Pancevo resumes refining activity.
Key Takeaways:
- US Treasury grants OFAC licence allowing NIS to operate until 23 January, enabling Pancevo refinery to restart after a 36-day shutdown.
- The decision eases Serbia’s fuel crisis and bolsters Serbia energy security while negotiations continue over Russian shareholders’ stake.
- Hungary’s MOL is reportedly negotiating to acquire Russian-held shares, with high-level talks involving Serbia, Hungary and the US.
