Earlier this year, the U.S. Department of the Treasury introduced sanctions targeting Russia’s energy sector, which are now being applied to Serbian oil company NIS. This affects NIS’s crude oil transport agreement with Croatian pipeline operator JANAF, valid from 1 January 2024 to 31 December 2026. Under the contract, NIS reserved pipeline capacity under a “ship or pay” arrangement, covering a total of 10 million tons of crude oil for the agreement’s full duration.
With legal representation from a U.S.-based law firm and support from the Croatian Government, JANAF successfully obtained multiple consecutive licenses from the Office of Foreign Assets Control (OFAC). These licenses have allowed JANAF to continue fulfilling its transport obligations under the NIS agreement despite the sanctions. The most recent license extends operations until 1 October 2025, with an additional short-term authorization allowing continued operations until 8 October.
JANAF emphasized that the duration of the U.S. Treasury sanctions on NIS remains uncertain, depending on future regulatory decisions and potential legal actions. As a result, the full impact on the company’s operations cannot yet be determined. The company stated that it will continue closely monitoring developments, maintaining communication with NIS and other stakeholders, and pursuing all available legal and strategic measures to ensure operational stability. The objective remains to maintain performance that meets the expectations of shareholders, partners, and employees.
