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Serbia claims US plans to sanction Russian-backed energy firm

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Serbia claims US plans to sanction Russian-backed energy firm
Serbian President Aleksandar Vucic and German Chancellor Olaf Scholz (not pictured) speak to the media following talks over lithium mining on Dec. 10, 2024 in Freiberg, Germany. Germany and Serbia will be cooperating in the sustainable mining of lithium, a critical substance for the production of batteries for electric cars. (Sean Gallup/Getty Images)

Serbian President Aleksandar Vucic said on Dec. 13 that the United States is planning to impose sanctions in the coming days on the country’s sole gas supplier, citing its Russian ownership.

The Petroleum Industry of Serbia (known by its local acronym NIS), primarily owned by Russia’s Gazprom Neft and its parent company Gazprom, is Serbia’s exclusive gas supplier and controls the main pipelines delivering gas from Russia to Serbian households and industries.

"The British are also joining the sanctions, which then means everyone. This is probably one of the hardest pieces of news," Vucic said during an interview on a government-linked private television station, according to AFP.

Neither the United States nor the United Kingdom has commented on the reported sanctions. Serbia, an EU candidate country, has maintained close ties with Moscow and refused to impose sanctions against Russia since the invasion of Ukraine.

"I think this is part of broader geopolitical pressure on Russia," Vucic added, warning that the move would significantly impact Serbia, which relies heavily on Russian gas. He noted that Serbia is negotiating a new gas arrangement with Russia, as the current deal expires in March 2025.

Vucic suggested that reducing Russian ownership of NIS to below 50 percent might be a solution, allowing Serbia to purchase a larger stake. He added that the sanctions, if implemented, are expected to take effect from Jan. 1.

According to NIS's website, Gazprom Neft owns 50 percent of the company, Gazprom holds 6.15 percent, and the Republic of Serbia owns 29.9 percent, with the remaining shares distributed among citizens, employees, and other minority shareholders.

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Olena Goncharova

Head of North America desk

Olena Goncharova is the Head of North America desk at The Kyiv Independent, where she has previously worked as a development manager and Canadian correspondent. She first joined the Kyiv Post, Ukraine's oldest English-language newspaper, as a staff writer in January 2012 and became the newspaper’s Canadian correspondent in June 2018. She is based in Edmonton, Alberta. Olena has a master’s degree in publishing and editing from the Institute of Journalism in Taras Shevchenko National University in Kyiv. Olena was a 2016 Alfred Friendly Press Partners fellow who worked for the Pittsburgh Post-Gazette for six months. The program is administered by the University of Missouri School of Journalism in Columbia.

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