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Serbia claims to have enough fuel reserves despite sanctions closing a key refinery

The government of Serbia said that it has enough fuel to supply its domestic market. This comes as the NIS oil refinery, which is vital for the country, faces a possible shutdown due to U.S. sanction against its Russian owners.

NIS, which provides most of Serbia's energy needs, requested last week a license from the Office of Foreign Assets Control of the U.S. Treasury Department to continue operations as its Russian majority owners search for a buyer of their stake.

In a press release, the Serbian government stated that they had discussed ways to ensure a steady supply of petroleum products on the market.

No reason to be concerned

The government released a statement that said, "The economy and the citizens have no cause for concern as there are enough quantities of all petroleum-derived products."

In a post on her Instagram account, Energy Minister Dubravka Handanovic stated that she met with representatives of the major oil companies in Serbia including MOL, OMV, and Helleniq Energy to discuss fuel supply.

She wrote, "The state will use mandatory reserves in the event of a crisis."

Gazprom Neft owns 44.9% and Gazprom 11,3% of NIS. Serbia holds 29.9% of NIS, and the rest is held by small investors. Washington wants to see NIS divest of all Russian assets and has given its owners three months in which to find a buyer.

OFAC imposed sanctions on Russia's oil industry in January. However, their implementation with respect to NIS has been repeatedly delayed before taking effect finally on October 8.

The banks have ceased processing NIS payments, and the JANAF crude oil pipeline in Croatia has halted delivering crude to the refinery.

Djedovic handanovic stated last month that the NIS refinery located outside Belgrade would be unable to function beyond November 25th without new crude supply.

Djedovic handanovic, who spoke on Sunday, said that NIS's operational reserves, as well as all the other reserves, totaled 89,825 tons of diesel, and 53,648 tonnes of gasoline.

She said last week that the government approved the importation of 38,000 metric tonnes of petrol and 66,000 metric tons diesel for the state reserves. (Reporting and editing by Conor Humphries, Alex Richardson and Aleksandar Vasovic)

(source: Reuters)