NIS operating license renewal expected from OFAC

Energy expert Željko Marković expects the U.S. Office of Foreign Assets Control (OFAC) to extend the operating license for Naftna Industrija Srbije (NIS), which is set to expire on October 30. Marković suggested that ongoing dialogue between Washington and Moscow could positively influence the decision.

In the event of an unfavorable decision, the Pančevo oil refinery would initially utilize existing crude oil reserves. Once depleted, refinery operations could be suspended, with market supply maintained through finished derivative stocks and imports. Marković noted that current reserves could ensure uninterrupted supply for approximately two to three months, though a failure to resolve the issue beyond that period could risk shortages due to the cessation of domestic oil processing.

A license extension may also facilitate continued negotiations regarding the ownership structure of NIS. Recent reports have indicated discussions between the Hungarian company MOL and Russian shareholders Gazprom Neft and Gazprom. However, any potential agreement remains subject to approval from relevant authorities, including OFAC.