Serbia's oil refinery to close after U.S. refuses to extend NIS license

Serbia's President Aleksandar Vučić announced on Tuesday that the operational license for the Serbian Oil Industry (NIS) would not be extended, leading to the closure of the country's oil refinery. The Serbian government has allowed NIS to settle its financial affairs and ensure that employees and suppliers are paid by the end of the week.

Vučić expected a waiver

Vučić expressed disappointment that the United States did not extend the refinery’s operating license, despite his expectations to the contrary. The shutdown had been looming for some time, as the U.S. imposed sanctions on the majority Russian-owned Serbian company in January. Serbia was given 45 days to remove Russian capital from NIS, but despite several extensions, this deadline has not been met.

Shutdown threatens fuel supply

Due to the U.S. sanctions, oil deliveries via Croatia to Serbia had already ceased, leaving the NIS refinery without oil by the end of November. As a result, there has been no production since then. Serbia's fuel reserves are only expected to last until the end of the year, with the shutdown potentially leading to a severe fuel shortage in the country from the start of 2026.

The most likely scenario now is that another oil industry player will buy into the company. Among the potential buyers, MOL has been mentioned as a leading candidate, though President Vučić has reportedly discussed a possible deal with Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. Earlier this year, the Croatian company Janaf also expressed interest in acquiring a stake in the company.