The United States of America imposed full sanctions on the Oil Industry of Serbia (NIS), the largest energy company in Serbia, on October 9, 2025.

This decision, made after multiple delays, was justified by the majority Russian ownership and Washington’s effort to prevent the financing of the Russian war machine through energy revenues. The sanctions took effect immediately and are expected to have a serious impact not only in Serbia but also in Bosnia and Herzegovina, given that NIS operates in BiH through the company G-Petrol d.o.o. Sarajevo.

Reasons and scope of the sanctions

NIS was placed on the OFAC list of sanctioned entities (the so-called SDN list) as a company under the control of Gazprom Neft, the Russian energy giant. Thus, NIS was designated as part of a broader Russian network through which Moscow generates revenue to fund the war in Ukraine.

American measures block all financial and business transactions with NIS, including the use of international payment cards, foreign currency accounts, and cooperation with Western banks.

Already in the first days of the sanctions’ implementation, the company’s operations were disrupted: JANAF from Croatia had to suspend the transport of oil to the refinery in Pančevo, directly threatening the supply of crude oil and regular market distribution.

The importance of NIS for Serbia

NIS is the backbone of Serbia’s energy system – employing more than 13,000 people, operating refineries in Pančevo and Novi Sad, and providing up to 80% of the country’s fuel needs. It is also one of the largest individual contributors to the state budget.

Sanctioning such a large and vertically integrated company therefore has deep economic consequences: a drop in refining means lower revenues from excise taxes, VAT, and dividends, and any disruption in the operation of Pančevo immediately reflects on prices and inflation.

President Aleksandar Vučić described the sanctions as “a heavy blow to Serbia,” but also as a challenge the country must overcome by finding new sources of supply and reducing dependence on Russian capital.

NIS presence in BiH through G-Petrol

In Bosnia and Herzegovina, NIS operates through G-Petrol d.o.o. Sarajevo, which manages more than 40 gas stations and employs around 500 workers. G-Petrol is the second-largest fuel distributor in BiH, and almost all products come from the Pančevo refinery.

The sanctions on NIS therefore automatically reflect on BiH – payments at Gazprom/NIS stations are only possible in cash or with domestic cards, as international transactions are blocked.

Nevertheless, the BiH market has not yet experienced major disruptions: other distributors, such as INA, took over part of the supply in time, so there are no shortages. However, in the long term, greater dependence of BiH on imports from Croatia and EU refineries is expected, which could raise fuel prices and shift competitive dynamics.

Political-economic impact

American diplomatic representatives emphasize that the sanctions are not directed against Serbia, but solely against Russian capital in its energy sector. According to U.S. chargé d’affaires Alexander Titolo, the goal is for Serbia “to regain control over its key resources and strengthen energy independence.”

On the other hand, Belgrade is trying to find ways to mitigate the consequences, including the possible buyout of Russian shares in NIS or bringing in third-party investors who are not under sanctions.

In Bosnia and Herzegovina, reactions have been rather muted. In the Federation of BiH, the prevailing view is that the sanctions will strengthen the market position of Western suppliers, while in Republika Srpska, the move is also interpreted as political pressure on Serbian interests in the energy sector.

Conclusion

The sanctions against NIS represent a turning point for the energy sector of Serbia and the region. In the short term, thanks to reserves, fuel shortages are unlikely, but long-term operations under American blockade are not sustainable.

Serbia will have to choose between keeping Russian capital and gradually aligning with Western energy rules – a decision that will shape not only the country’s energy but also its political future.

For BiH, a potential withdrawal of G-Petrol would open space for a greater role of Western companies and a shift in the energy balance in favor of the EU.

The sanctions against NIS, however severe, could in the long run serve as a catalyst for the transition toward a more stable and independent energy future for the Balkans – if the response to this challenge is thoughtful, coordinated, and strategic.

StandardPrva.ba / AK Stevanović

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