Serbia's dilemma: Navigating US sanctions on NIS amidst russian stakes
The government in Belgrade has the funds to buy out the shares of Russian companies in the Serbian oil company NIS, reports the Russian newspaper "Kommersant". The declaration was made in the context of potential US sanctions against this company. However, the authorities in Serbia would prefer to avoid such a scenario.
Serbia's president, Aleksandar Vučić, confirmed in his address that the country is ready to buy the shares of Gazprom and Gazprom Neft in NIS. According to estimates, the company's value is around CAD 1.5 billion, of which approximately CAD 900 million is needed to buy the Russian shares.
Serbia and Russia as partners?
Vučić directly addressed the American administration, questioning the effectiveness of potential sanctions. The Serbian leader argued, " You want to punish them, and we will pay them part of the ownership, and they will immediately receive CAD 750 million to CAD 1.1 billion." Such a transaction could paradoxically strengthen Russian companies financially.
Belgrade maintains close economic relations with Moscow, especially evident in the energy sector. Sanctions could significantly affect the situation of NIS — one of the largest vertically integrated energy companies in Southeast Europe. Currently, Gazprom Neft controls 50% of the company's shares, and Gazprom additionally holds 6.15% of the shares.
Western sanctions may lose their strength
Vučić informed about the possibility of imposing sanctions on NIS in December of last year. Since then, he has conducted a series of consultations with high-ranking representatives of both sides. He met with the Russian Foreign Minister, Sergei Lavrov, and the US Deputy Secretary of State, Jose Fernandez, among others.
After talks with American diplomats, the President of Serbia conveyed worrying news to his citizens, saying that "there is no good news". This indicates the possibility of introducing the announced restrictions, despite Serbian efforts to avoid them.
