Serbia Faces Energy Crisis as US Sanctions Target Russian Oil

Wed Nov 12 2025 12:25:09 GMT+0200 (Eastern European Standard Time)

Serbia's reliance on Russian energy is challenged by impending US sanctions on its national oil company, prompting tensions with Moscow amid a flurry of diplomatic exchanges.

Amid escalating US sanctions on Serbia's national oil company, Serbia finds itself at an impasse with traditional ally Russia. The sanctions, affecting over half of the Petroleum Industry of Serbia, threaten to disrupt the country’s energy supplies and create economic instability. Serbian officials are urgently seeking solutions as the looming deadline to support their energy needs approaches.

Serbia is grappling with an energy crisis as it prepares for the impact of US sanctions against its national oil company, the Petroleum Industry of Serbia (NIS), which is significantly owned by Russian state companies.

Tensions have escalated between Serbia and Russia, with Serbian President Aleksandar Vucic exchanging stern messages amidst growing issues related to oil and gas supplies. The urgency stems from the fact that NIS, which is vital for Serbia’s petrol and diesel supply, is facing dire constraints due to its ties with the Russian energy sector.

Serbian Energy Minister Dubravka Djedovic Handanovic indicated that while the Russian side signaled a willingness to transfer control of the company to a third party, time is running short. The recent enforcement of US sanctions has already led to disruptions in payment processing at NIS's petrol stations, which no longer accept credit cards due to restrictions from companies like Visa and Mastercard.

As Serbia relies heavily on oil imported through Croatia’s pipeline, the sanctions have already resulted in a halted flow of crude oil, putting pressure on domestic refineries that may run dry by the end of November.

The concatenation of these factors places Serbia in a precarious position, not just with energy supply but also in its diplomatic relations with Russia and the potential shift in its energy alignment. With a looming deadline and no clear resolution in gas negotiations with Russia, Serbia's future energy strategy is highly uncertain amid calls for nationalization of NIS and contemplating a pivot toward EU energy frameworks.

This situation is symptomatic of broader regional challenges, as neighboring countries also navigate the implications of US sanctions on Russian energy ventures.