EditVučić’s ultimatum: 50 days for Russia to exit Serbia’s oil giant
If no buyer is found, Serbia intends to install its own management and offer Moscow the maximum fair price for the Russian shares
Serbian President Aleksandar Vučić gave Russia on Tuesday 50 days to sell its majority stake in the country’s only oil company, NIS, or face the introduction of Serbian state management and a forced buyout.
The ultimatum comes as U.S. sanctions, imposed on 9 October over NIS’s Russian ownership, have pushed the Pančevo refinery to the brink of complete shutdown, with crude oil reserves sufficient for only a few more days of minimal operation.
The United States sanctioned NIS because it is majority-controlled by Gazprom Neft, a subsidiary of the Russian energy giant Gazprom, as part of broader measures targeting Russian interests following the invasion of Ukraine. Washington has demanded the complete withdrawal of Russian capital. Although Russia signaled readiness to sell only days ago, no deal has been finalized.
Serbia owns 29.9 percent of NIS, while Gazprom Neft holds 44.9 percent and another Russian-linked entity recently acquired an additional 11.3 percent, keeping effective control above 50 percent. The 2008 privatization saw Serbia sell a 51 percent stake to Gazprom Neft for €400 million in a controversial non-tender deal.
A polite ultimatum to “our Russian friends”
In an emergency address on 25 November, Vučić announced that the government had unanimously accepted his proposal to grant the Russian side a 50-day window to conclude a sale. Russia has reportedly agreed to sell, although no progress is reported.
Russia ready to sell Serbia’s NIS refinery amid U.S. sanctions
“We are ready to bear all the consequences in the next 50 days,” he said, repeatedly referring to Russian representatives as “our friends” while making clear that Serbia would act decisively if the deadline passed without a transaction.
If no buyer is found, Serbia intends to install its own management and offer Moscow the maximum fair price for the Russian shares. Vučić revealed that he has already sent a letter to the U.S. government outlining Serbia’s position and providing unspecified guarantees, expressing hope that Washington will extend NIS’s operating license during this time.
He described the chances of receiving such a license as “50/50” and appealed directly to the Americans to approve it “not for the government, but for the citizens of Serbia.”
The Pančevo refinery, with an annual capacity of 4.8 million tons, supplies the vast majority of Serbia’s fuel needs and is currently running in low-utilization “hot circulation” mode.
Four days of oil, then the banks pull the plug
Without a new U.S. license, Serbian banks have warned they will halt all transactions with NIS starting next Monday to protect themselves from secondary sanctions.
The National Bank of Serbia has confirmed it will suspend payments involving the company if no authorization is granted, citing the need to safeguard the stability of the financial system.
Parliament Speaker Ana Brnabić, appearing on Euronews, announced that the government will submit a budget amendment on 26 November explicitly foreseeing the possibility of Serbia taking ownership of NIS. While stressing that she remains opposed to outright nationalization, warning it would “open Pandora’s box”, Brnabić said the state must be prepared to step in to protect jobs and living standards.
She criticized Russia for not sufficiently considering Serbia’s interests, noting, “Have they kept that in mind so far? I would say no.”
The crisis has exposed the balance Belgrade must perform between its traditional ties with Moscow and mounting Western pressure. Diplomatic sources suggest the U.S. decision on a new license will signal how Washington currently views Serbia’s geopolitical orientation, especially as the country pursues EU membership while maintaining close links with Russia and China.
Economists warn that full activation of secondary sanctions could disrupt international payment channels for Serbian banks, raise the cost of capital, and create liquidity strains across the economy, even if ordinary citizens are unlikely to see their cards blocked or daily transactions halted immediately.
For the government, the episode represents a major political and economic stress test, with potential fallout for financial markets, investor confidence, and President Vučić’s domestic standing.
As the 50-day clock begins ticking and the Pančevo refinery counts down what could be its final days of operation, Russia needs to secure a buyer, unless the Kremlin decides that its higher interest is to create chaos in Serbia.
Sources: Press release of the Government of Serbia, RTS, BETA, Euronews
Serbia nears end of Russian era in key oil giant as Gazprom agrees to divest majority stake
Caption: Serbian President Aleksandar Vucic attending a press conference in Belgrade, Serbia, 09 October 2025. U.S. sanctions targeting the Gazprom Neft-owned Naftna Industrija Srbije (NIS) have cut off the nation’s primary crude oil supply, threatening to halt its only refinery and sparking fears of an energy crisis. EPA/ANDREJ CUKIC
Updated: November 26, 2025 - 11:25
