Serbia Struggles with Energy Crisis as US Sanctions on Russia Bite

Wed Nov 12 2025 13:21:04 GMT+0200 (Eastern European Standard Time)

Serbia faces significant challenges in its energy sector due to US sanctions targeting Russian oil, raising tensions with its traditional ally, Moscow.

The imposition of US sanctions on Serbian Oil Company NIS, heavily tied to Russian ownership, has led to a crisis for Serbia, impacting fuel payments and threatening the country’s oil supply. The Serbian government seeks a waiver from the US while grappling with strained relations with Russia amidst ongoing energy negotiations and a potential arms trade fallout.

Serbia is facing a precarious energy crisis as the imposition of US sanctions on its national oil company, NIS, has thrown its reliance on Russian energy into disarray. With over half of NIS owned by Russian state enterprises Gazprom and Gazprom Neft, the sanctions have led to immediate consequences, including disruptions to payment systems for consumers and a potential halt in crucial fuel supplies.

Serbian Energy Minister Dubravka Djedovic Handanovic informed the country that NIS's Russian owners are exploring a waiver with the US, indicating a readiness to transfer control of the company. However, time is of the essence as the oil supply is projected to dwindle before the end of November.

The immediate impact of these sanctions is evident; petrol stations across Serbia have begun displaying signs notifying customers that Visa and Mastercard transactions are no longer accepted. This has left many consumers, especially foreigners, unable to pay for fuel as only cash is accepted at Gazprom-owned service stations.

NIS, which operates Serbia’s oil refineries and provides more than 80% of its petrol needs, is now embattled. The flow of oil through the Janaf pipeline from Croatia has been interrupted, and with contracts close to expiring, Serbia's energy sector appears vulnerable.

Adding to these complications, Serbia's diplomatic relations with Russia have soured over its arms exports to third-party countries. Serbian President Aleksandar Vucic's decision to allow arms exports to EU nations has led to friction, highlighting a growing rift between Belgrade and Moscow.

The situation is critical; if the US waiver is delayed or denied, Serbia faces severe energy shortages that could impact its economic stability and long-standing ties with Russia. Despite these challenges, the Serbian government maintains a desire to pursue EU membership, possibly shifting its geopolitical alignment in light of recent developments.