Supported byClarion Energy
HomeNews Serbia EnergySerbia, Country has...

Serbia, Country has to reason to nationalize oil company NIS

According to economy analyst Bogdan Petrovic, Serbia has to reason to nationalize oil company NIS, unless the European Union threatens to impose sanctions against Serbia for doing business with Russian companies. Until that happens, the Government should not even consider such option.

He said that even the Government decides to nationalize NIS, the problem with crude oil supply remains, because it cannot rely on Russian oil any more.

Petrovic adds that the nationalization of the company would cause two big problems. NIS is currently a part of a large company GazpromNeft, which will cover any potential losses, instead of the state in case of nationalization. Furthermore, prior to 2008, when the state was the majority shareholder of NIS, it proved that it doesn’t know how to efficiently manage the company, so there is a risk that NIS will start to accumulate losses again under the state management.

Earlier this month, Serbian media reported that State Oil Company of Azerbaijan (SOCAR) is interested in the purchase of Russian stake in NIS, but the company later denied such reports.

Petrovic added that it is possible that GazpromNeft could sell its stake in NIS to a front company in order to avoid sanctions, and it could later buy back the stake.

Serbian oil company NIS is majority owned by Russian GazpromNeft, which holds 56.15 % stake in the company.

Supported byClarion Owners Engineers
Supported byspot_img
Supported byspot_img

Latest News

Supported byspot_img
Supported bySEE Energy News

Related News

Serbia and SOCAR near joint venture for up to 500 MW gas-fired CHP

Serbia is close to setting up a joint venture with Azerbaijan’s SOCAR to develop a gas-fired combined heat and power plant. The planned facility would have capacity of up to 500 MW. The project is being advanced through negotiations...

Serbia’s power system recovery meets continued lignite dependence and rising project costs

Generation mix after earlier operational issues A 2025 energy-sector assessment says Serbia’s electricity system has recovered from severe operational problems earlier in the decade, but the sector remains exposed to further shocks. Continued reliance on lignite, higher infrastructure costs and...

Serbia maintains power price advantage as volatility challenges export potential

Serbia maintained one of the more competitive wholesale electricity positions in Southeast Europe during the second half of August, supported by stronger hydro, renewable and thermal generation. However, the sharp increase in prices at the beginning of September demonstrated...
Supported byVirtu Energy