US sanctions cripple Serbia over Russian oil, Hungary also affected
Change language:
Today, 9 October, United States sanctions came into effect against NIS, the Serbian oil company that is majority Russian-owned. Immediate consequences include the shutdown of the Adriatic pipeline (JANAF) and the suspension of bank card payments at NIS petrol stations. Although the Serbian government tried to avoid the restrictions, Washington has now refused Belgrade’s request for a delay for the sixth time.
This decision has serious implications not only for Serbia but for the entire region, particularly Hungary, whose energy systems and oil industry are closely tied to regional infrastructure.
Why did the US act?
NIS – officially Naftna Industrija Srbije – is the country’s largest oil company, operating a refinery and around 330 petrol stations. Its main shareholder is Russian Gazprom Neft (45%), along with another Russian-backed company, Intelligence (11%). The Serbian state owns only 30%, with the rest held by small investors.
The American government opted for sanctions because the company is under Russian influence, and the US aims to limit Russia’s economic presence in the Balkans. Serbian President Aleksandar Vučić has ruled out nationalisation – the only legal loophole – leaving Belgrade in a difficult position.
Consequences: Threat of fuel shortages and price hikes
JANAF, the Adriatic oil pipeline, halted supplies in the early hours of 9 October, meaning Serbia’s only oil refinery in Pančevo will receive no more crude. While the country has significant reserves, experts believe they will last only a few months.
According to a NIS statement, the stations are “prepared to meet consumer demand”, but payments can currently only be made in cash because Visa and MasterCard transactions linked to American payment systems have been suspended.
The Serbian government is trying to reassure the public, but independent energy experts warn that fuel shortages and price surges will be inevitable if the situation persists.
Hungarian interests and MOL’s role
In the crisis, Hungary and its oil company MOL could assume a key role. MOL currently operates 65 filling stations in Serbia and stands ready to take over NIS’s market position should the Serbian company become inoperable.
MOL is one of the region’s most stable players and is unaffected by US sanctions. This could strengthen Hungary’s position in the Balkans’ energy supply, while NIS’s operational problems create new market opportunities for MOL.
I want to hear orban saying that sanctions wont work and the Trump pro peace plans will work…. seriously, this guy should resign
Its about stopping the killing- there is no other reason – the US wants o work with russia and has gone to great length’s to make that happens budapest only interest is gays for palestine and allowing men in womens sports and locker rooms- Teachers and doctors must decide , instead parents of what is done to the children’s bodies. Daily we hear how abused gays are in hungary – it must be pure torture. This seems to be #1 issue in hungary young people- no demostrations to stop the killing of thousands in ukraine, but palestine needs to be saved. Its youn children are chanting kill the jews- videos on you tube, unless the EU hasn’t had them removed.
I’m not certain that I follow.