Serbia to halt Russian-owned refinery after US denies waiver

WISE NEWS PRESS / BELGRADE, Serbia — Dec. 2, 2025

Serbian President Aleksandar Vucic announced on Monday that the country must halt operations at the Russian-owned Pancevo oil refinery after the United States denied a request to exempt the facility from sanctions on crude oil imports.

The refusal by Washington threatens Serbia's fuel supply and comes as the refinery's majority owner, the Petroleum Industry of Serbia (NIS), continues to seek a buyer for its Russian-held shares. Vucic described the decision as political rather than economic.

'Disappointed and baffled'

Vucic expressed his frustration with the decision by the US Office of Foreign Assets Control (OFAC). "We hoped to get a license from the US government to continue oil supplies to our refinery in Pancevo. There was no positive decision. I am not only disappointed but also baffled, because I don't see what they gain from this," he said.

The President noted that the refinery is currently losing €370,000 daily under existing restrictions and that Energy Minister Dubravka Đedovic Handanović would instruct NIS to shut down operations.

Warning of economic impact

Vucic warned that the crisis extends beyond NIS and could impact the entire Serbian economy. He highlighted the risk of secondary US sanctions on the Serbian Central Bank and commercial banks if they continue transactions with NIS. "This would be a disaster for our investment rating and for everything," he stated.

Fuel stocks sufficient until January

Despite the shutdown, Vucic assured the public that fuel reserves are adequate for the short term. With over 200,000 tons of diesel in reserve, he stated there would be no shortages until the end of January. However, he acknowledged that alternative transport methods via tankers would increase logistics costs.

Additionally, Vucic reported that Croatia’s JANAF pipeline has also blocked oil shipments intended for Serbia's reserves.

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