Foreign commercial banks operating in Serbia are set to close NIS accounts on February 24, halting all financial transactions for the company. This move comes after instructions from their parent companies, as the US administration has not agreed to delay sanctions, with any postponement unlikely.
Despite this setback, NIS fuel stations will remain operational, ensuring a steady fuel supply. Customers can still purchase fuel at the company’s 400 stations under the NIS Petrol and Gazprom brands, but only with local DINA cards or cash, as Visa and Mastercard are expected to comply with the sanctions.
The situation is becoming more critical as Intesa and OTP Bank plan to demand the immediate repayment of loans amounting to 100 million euros on February 24. This adds significant financial pressure on NIS, with more challenges likely if other creditors follow suit. NIS’s total debt is estimated to range between 100 million and 550 million euros, a financial burden that could prove overwhelming even for larger corporations. The Serbian government and expert teams are closely monitoring the crisis, seeking a potential last-minute solution, but time is running out, and there has been no response from Washington to Serbia’s request for a sanctions delay. Meanwhile, Russia remains unwilling to relinquish its ownership stake, deepening the political deadlock and leaving Serbia in a difficult situation.
Serbia must carefully consider its next steps, as it risks facing sanctions itself. While the state-owned Postanska Stedionica is expected to continue processing transactions, there may be another bank willing to work with NIS until the end of the month in hopes of a shift in US policy. Serbia’s ability to resolve this issue independently, without agreements between Moscow and Washington, remains uncertain. One option under consideration is the purchase of 50% of GazpromNeft’s shares, currently under sanctions. While Serbia has the necessary financial resources for this transaction, it would require careful strategic planning. National Bank Vice Governor Zeljko Jovic previously stated that Serbia’s foreign currency reserves, particularly the state-controlled portion, could cover such a transaction.
Ultimately, the resolution of this crisis lies in the hands of Moscow and Washington, and Serbia faces a precarious situation.
