Verma in Belgrade: Sanctions against NIS target Russia, not Serbia

The United States (US) sanctions against the Oil Industry of Serbia (NIS) are aimed at Russia, not Serbia, said Richard Verma, US Deputy Secretary of State for Management and Resources, Richard R. Verma, on Saturday in Belgrade.

"There will be no economic consequences for Serbia if Russian ownership of NIS is removed. Russia is not investing in Serbia's future, because the profits it makes from NIS are not invested in Serbia. Changing the ownership structure will contribute to more peace in the region," Verma said at a joint conference with Serbian President Aleksandar Vučić.

He stressed that NIS is one of 2,000 Russian-owned companies on which the US has imposed sanctions.

"The goal is to remove Russian ownership from these companies. We will help Serbia diversify its energy sources and be independent in this regard," Verma added.

Vučić stated that the fact that sanctions against NIS are not aimed at Serbia is "poor consolation."

"According to initial calculations, around 30 countries have been affected by these sanctions in various ways - or entities from those countries - but everywhere it is about Russian assets, capital and interests," Vučić said at the conference.

He stated that Serbia needs a little more time to clarify uncertainties regarding the recent US sanctions against Russia, which also affect the NIS, and for this reason the talks with Moscow will be postponed.

"We need to know exactly what the conditions are, and then we will be able to talk to the Russian side about everything. There will be oil, gasoline, all fuels, but we will not confiscate anyone's property; we will pay the price," Vučić said.

Serbia's oil industry was sanctioned by the US Treasury Department on January 10 because it is owned by the Russian company Gazprom Neft. On Friday, Vucic said that these are "heavy and serious sanctions" and that "Russia's complete removal from ownership of NIS" is required.

NIS was included in the list of six companies that "are owned or controlled by, act or are suspected of acting for or on behalf of, directly or indirectly, Gazprom Neft."

NIS is the only company in Serbia that deals with the exploration, production and refining of oil and the production of natural gas. The Russian state-owned company, Gazprom Neft, has had a majority stake in NIS since 2008, while from 2022, its parent company, Gazprom, also has a stake.

In total, they hold 56.15 percent of the shares, while 29.87 percent is owned by Serbia. The remainder belongs to citizens, employees, former employees, and other smaller shareholders.

Gazprom Neft is under European and American sanctions due to Russia's invasion of Ukraine, but the world's largest gas producer, Gazprom, is not subject to the embargo of Western countries./ REL