Serbian oil company NIS is grappling with mounting challenges in securing crude oil from international suppliers, while facing a loss of domestic customers who are turning to alternative sources for fuel. The difficulties come as the company deals with growing pressure from forthcoming US sanctions.
NIS plays a vital role in Serbia’s fuel market, supplying about 80 percent of the country’s gasoline and diesel, along with nearly all jet fuel and heavy fuel oil. The company’s stability is considered essential for the nation’s energy security.
The US Treasury has designated NIS as a sanctioned entity, initially giving Russian majority owner GazpromNeft a 45-day period to divest. That deadline has since been extended through successive 30-day waivers.
Historically dependent on long-term crude oil contracts, NIS has now withdrawn its tender for 2025. Instead, it is purchasing oil through short-term spot market deals with a limited number of international trading firms still willing to cooperate. The company confirmed that it has completed a recent crude oil purchase under the terms of the current waiver and is actively working with multiple suppliers to adapt to the changing landscape.
Crude oil imports to NIS via the Croatian port of Omisalj and the JANAF pipeline have averaged around 28,000 barrels per day so far in 2025. This is a notable drop from approximately 40,000 barrels daily in 2024 and 70,000 in 2023, indicating a sharp decline in available supply.
Meanwhile, major fuel retailers OMV and Eko have stopped sourcing fuel from NIS for their operations in Serbia. OMV has shifted to supplying its Serbian outlets via barges from other European refineries, while Eko is using supply routes from Greece. Both companies cited the effects of US sanctions as the reason for the change.
Despite the shift in supply dynamics, one Serbian fuel trader expressed concern that the country’s infrastructure—particularly for barge, rail, and truck transport—may be insufficient to fully support Serbia’s current fuel demand. The country’s daily needs are estimated at 44,000 to 49,000 barrels of diesel and around 14,000 barrels of gasoline.
NIS emphasized that it remains committed to fulfilling all current agreements with its corporate partners and other oil companies. The company also confirmed that its refinery in Pancevo continues to operate without disruption.
