Aleksandar Vucic warns of looming US sanctions threat to Serbia's energy security

In Serbia, President Aleksandar Vucic held discussions with US Under Secretary of Economic Growth, Energy and the Environment, Jose Fernandez, regarding possible sanctions against Naftna Industrija Srbije (NIS). This key energy company, co-owned by Russian energy giant Gazprom, is under scrutiny due to its Russian ownership. Vucic stated that he had 'not much good news' to share, as he recognized the impending challenges this could create for Serbia's energy security. He noted that the potential sanctions could disrupt Serbia's oil supply, especially via the vital pipeline from Croatia. Following the conversation with Fernandez, Vucic indicated that he would engage in discussions with both US and Russian officials to help safeguard Serbia’s energy stability. He had previously mentioned receiving communication from Russian Foreign Minister Sergey Lavrov, during which they discussed organizing a meeting to explore solutions. One potential approach to alleviate the sanctions pressure would be restructuring NIS’s ownership to reduce Russian stakes below 50%. The environment surrounding these developments is marked by increasing geopolitical tensions due to the Ukraine conflict, which has prompted a series of sanctions imposed by Western nations on various Russian companies. While the US and EU have applied mounting pressure on Serbia to align with their stance against Russia, Vucic has maintained a neutral position, ensuring that Serbia continues to enjoy close economic relations with Moscow. Despite the tricky diplomatic landscape, Vucic expressed determination that Serbia would preserve its energy independence amidst potential external pressures. As bipartisan discussions unfold, Serbia’s energy security remains at the forefront of Vucic’s agenda. His discussions with both US and Russian officials signal a broader strategy of maneuvering within this complex geopolitical landscape to protect critical national interests. The future of NIS, positioned centrally in Serbia’s oil supply chain and with substantial Russian shareholding, remains uncertain as these negotiations progress.