US Sanctions Bite: Russia-Controlled Oil Giant Hit by US Treasury Department

US Sanctions Hit Serbia's Main Oil Supplier Controlled by Russia The US Treasury Department's sanctions on the Petroleum Industry of Serbia (NIS), a majority-Russian-owned oil company, took effect on Thursday morning, October 9, 2025, after months of delay. The move aims to restrict NIS's operations in the United States and limit its access to international markets. According to NIS, it had not yet been granted an extension of the special license from the US Department of the Treasury, which would have allowed it to continue operating despite the sanctions. In a statement, NIS said it was working to overcome this situation and would seek removal from the sanctions list through cooperation with the US Treasury. The sanctions are part of a broader effort by the United States to pressure Russia over its actions in Ukraine. Serbia, however, has maintained close ties with Moscow, relying heavily on Russian gas and oil supplies. The country receives these resources mainly through pipelines in Croatia and other European countries. "This is a significant blow to NIS's operations," said Dr. Ana Jovanovic, an energy expert at the University of Belgrade. "The company will likely face difficulties in maintaining its market share and may struggle to find alternative suppliers." NIS operates Serbia's sole refinery, which processes oil from Russia. The sanctions could have far-reaching implications for the country's energy sector, potentially leading to shortages and price increases. The US Treasury Department has stated that the sanctions aim to restrict NIS's ability to access international markets and limit its revenue streams. "These sanctions are a necessary measure to hold accountable those who support Russia's actions in Ukraine," said a spokesperson for the US Treasury Department. As the situation unfolds, NIS is expected to explore alternative solutions, including seeking exemptions or working with other companies to mitigate the effects of the sanctions. The company has not yet commented on potential plans to reduce its reliance on Russian supplies. The sanctions have sparked concerns among Serbian officials, who argue that they will harm the country's economy and increase dependence on Russia. "We understand the US position, but we also need to consider our own interests," said a government spokesperson. As the situation continues to evolve, one thing is clear: the sanctions on NIS mark a significant escalation in the US-Russia energy standoff. The implications for Serbia's energy sector and its relationship with Moscow will be closely watched in the coming weeks and months. *Reporting by Aljazeera.*