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President says Serbia's NIS Refinery will be operational on Jan. 17 or 18.

Aleksandar Vucic, President of Serbia, said that the Russian-owned NIS refinery in Serbia, sanctioned by the United States, would be operational as early as 'January 17 or 18, after it received a temporary license.

The Office of Foreign Assets Control of the U.S. Treasury Department granted NIS on Wednesday a temporary operating license until January 23. This will allow it to resume its production after a 36 day?break.

The US has given NIS - which owns Serbia’s only oil refinery - until 24 March to negotiate the sale of its Russian shareholders' stake.

Vucic, speaking to reporters in Belgrade, said: "I expect the first 85,000 tonnes of crude oil to be delivered by January 15th... and that 'the refinery will start operating on either January 17th or 18th... and that 'we can begin producing oil derivatives as early as January 25th and 26th."

Gazprom, the Russian oil company, owns 11.3% of NIS while its sanctioned oil subsidiary Gazprom Neft (SIBN.MM), holds 44.9%. The Serbian Government holds 29.9% of the shares, while small shareholders and employees hold the rest.

The Serbian government has said that it supports the ongoing talks between NIS and its?Russian owners, MOL.

After granting several waivers since the start of last year, the US sanctioned NIS in October as part of wider measures against Russia's Energy Sector.

The sanctions had halted the crude supply via Croatia's JANAF pipeline (JANF.ZA), shutting down the NIS refinery located in Pancevo, a northern town.

This week, JANAF announced that it also received a license allowing it export crude oil to NIS. (Reporting and editing by Hugh Lawson, Christina Fincher and Aleksandar Vaovic)

(source: Reuters)