The colonial tactics of the US continue in the Balkans. Following the recent US sanctions on Russia's two largest energy companies, Serbia is in despair, as it urgently needs an exemption from the sanctions to keep electricity flowing in the country.
The government of Serbia is warning this week that it may sink into a severe energy and economic crisis unless Washington grants a 90-day exemption from the US sanctions. Officials are essentially pleading for enough time for the Abu Dhabi National Oil Company (ADNOC) to temporarily take control of the country's only refinery, NIS, as it finalizes the purchase of the majority Russian stake.
The consequences of the sanctions
The US sanctions isolated NIS, which belongs to the Russian group Gazprom Neft, from US dollar transactions and blocked crude oil deliveries that usually arrive via Croatia. This left the 4.8 million-ton refinery operating at minimal capacity.
Crucially, NIS produces about 80% of Serbia's refined petroleum products, covering fuel needs in various vital sectors, such as aviation and diesel.
Officials in Belgrade are requesting a three-month grace period to resume the plant's operation under the non-Russian, Gulf-based entity, otherwise Serbia risks a chain reaction of fuel shortages and industrial disruption. This could have political consequences, leaders warn.
The White House's tactic
Washington has already granted similar, and possibly more extensive, exemptions to neighboring EU countries, such as Hungary, Romania, and Bulgaria.
The government of President Aleksandar Vučić has also traditionally been considered one of the White House's closest partners in the Balkans during the Trump era.
On Tuesday, he met with Ministry of Energy officials and subsequently stated, "We do not have good news, we did not receive a positive decision from the US regarding NIS."
He announced that the request for an exemption was rejected, at least for now. "I am not only disappointed, but also surprised, because I do not see what they gained from this," the Serbian president said.
What Interfax reports
Serbia has decided to completely suspend the operation of the refinery in Pancevo, and NIS will subsequently decide when to stop its operation, Vučić said.
NIS reported late on Tuesday that the Pancevo Oil Refinery began the process of suspending its production units due to a lack of crude oil for processing, as a result of the US sanctions.
"Activities at the Pancevo Oil Refinery during the shutdown process are organized so that the refinery units are ready to start up again as soon as the required conditions are met, that is, as soon as information on the availability of crude oil is received. During the refinery shutdown, employees will be engaged in the tasks they perform during scheduled shutdowns. NIS continues to supply the domestic market with petroleum products without interruption, thanks to the reserves secured earlier," NIS said in a statement.
The statement added: "NIS sincerely hopes that normal operation will be restored as soon as possible at the Pancevo Oil Refinery. The company remains unreservedly committed to efforts to be removed from the US Treasury Department's SDN list as soon as possible, or to acquire a new special license that will ensure its unimpeded operation, a path strongly supported by the authorities of the Republic of Serbia."
Appeasement efforts
Belgrade seems to be getting frustrated and running out of patience, especially given that Vučić has already aligned with Washington on policy towards Ukraine, despite the fact that Serbia, as a Slavic country, is historically considered an ally of Moscow.
Serbia has even supplied significant quantities of weapons to the Ukrainian forces since the beginning of the war. For this reason, the Kremlin had previously accused Serbia of "forgetting who their real friends and enemies are."
www.bankingnews.gr
Σχόλια αναγνωστών