The American OFAC did not meet the request of the Russian and Serbian sides to approve the extension of the Russian-owned NIS (Oil Industry of Serbia) license, Sputnik reports.
The explanation states that, after additional consultations with the US State Department, OFAC determined that “it would be contrary to the current licensing policy to approve transactions related to the continuation of operations, the promotion of changes in the corporate governance of NIS and activities related to the withdrawal of the ownership stake, which include the Bulgarian subsidiary and other non-Serbian subsidiaries of NIS, as stated in the request“.
“Specifically, such transactions would not contribute to the US foreign policy interest in ending Russian ownership of NIS. Accordingly, that part of your Request is hereby denied,” the explanation states.
The Ministry of Mining and Energy previously announced that the Oil Industry of Serbia (NIS) confirmed that the oil refinery in Pancevo, with existing stocks, will operate until November 25.
The Minister of Energy, Dubravka Đedović, addressed the public regarding the “bad news and difficult message” from the United States of America and regarding the sanctions against NIS, which came into force at the beginning of October.
“Namely, at the request of the NIS lawyers, which they sent to the American government and with which they offered a contract on the change of management in the oil industry of Serbia, for the first time the American administration clearly, unequivocally said and in writing, that it wants a complete change of ownership of the Russian shareholders, that is, it demands the exit of Russian ownership from the NIS company, as well as that there must be no hiding behind a proxy either by Russian associates of Gazprom or the Russian government. What is a difficult message for us is that we have not received a single day of extension for NIS, so that it can continue to work,” said Đedović Handanović.
Diplomatic sources told Nedeljnik earlier that an acceptable solution for NIS, the only two options are possible: that “Serbia takes NIS”, without specifying in detail what this entails, as well as “disinvestment of Russian co-owners” from the company.
Đedović stated that “it is impossible to change the ownership in seven or eight days”, but also clarified that there is room for negotiations on ownership.
“An approval was obtained for valid ownership negotiations until February 13, but no approval that NIS and the refinery can continue to operate. As the Minister of Energy, I believe that we have difficult decisions ahead of us. Namely, whether we should undertake the takeover of the company, and subsequently determine and provide compensation for damages. I know that President Vučić is against nationalization, as are many of us in the Government and outside the Government of Serbia, and that we have repeated this several times,” said Đedović.
She announced that an extraordinary session of the government will be held on Sunday at 11 a.m., which will be attended by the president.
“We had consultations all night, we practically didn’t sleep with President Vučić and members, certain members of the Government… I see what President Vučić is struggling with, and these are very difficult and responsible political decisions,” said Đedović.
She emphasized that “we will not allow our country to be endangered” but also that “some of the most difficult decisions in our history await us in the coming days.”
“I hope that our Russian friends will understand the gravity of the situation and that they will help us overcome it, because we find ourselves in this difficult situation that is no fault of our own, a political war is being waged, a geopolitical war is being waged, and we, as a small country, have to pay a big price. A small country that only wanted to play fair with everyone,” said Đedović Handanović.
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