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Sanctions on Serbia's Oil Industry / DASH responds to Vučić's statement: There is no business as usual with Russia

Sanctions on Serbia's Oil Industry / DASH responds to Vučić's

There is no "business as usual" with Russia, the US State Department said when asked by Radio Free Europe about the statement of Serbian President Aleksandar Vučić, who said that US sanctions against the Serbian Oil Industry, NIS, are "severe and serious."

The US Treasury said it has sanctioned Russian state-owned Gazprom Neft and Surgutneftegas, both based in Russia. NIS was sanctioned for so-called "collateral damage," meaning its ties to Russia's Gazprom.

Serbian President Aleksandar Vučić announced at a press conference on January 10, following this publication by the US Treasury Department, that these are "severe and serious sanctions" and that "Russia's complete removal from ownership of NIS" is required.

"They do not allow the possibility of 49 percent or less Russian capital," said President Vučić.

The State Department told REL that the United States "remains committed to disrupting Russia's revenue generation and the procurement and financial networks that Moscow uses to support its war against Ukraine."

"We will continue to take all appropriate actions to advance accountability for those who enable or benefit from Russia's illegal war and prevent Putin from using energy as a tool of oppression," the State Department said in a response.

The US Department added that "the US will continue to work with partners and allies around the world to ensure the security and diversity of energy supplies."

NIS is the only company in Serbia engaged in the exploration, production and processing of oil and natural gas. Gazprom Neft has a stake in NIS, as of 2022. Its parent company Gazprom also has shares.

According to NIS data, Gazprom Neft currently owns 50 percent of NIS's share capital, the Republic of Serbia owns 29.87 percent of the shares, while Gazprom owns 6.15 percent of the shares. The rest belongs to citizens, employees, former employees and other smaller shareholders.

Gazprom Neft has been under European and US sanctions since 2014, due to Russia's annexation of the Ukrainian Crimean Peninsula, and the company has been banned from accessing EU and US markets. NIS, on the other hand, owns more than 400 gas stations in Serbia and in the countries of the region: Bosnia and Herzegovina, Romania and Bulgaria./REL

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