US Treasury Department extends NIS operating license until October 30

Dubravka Djedovic Handanovic, Minister of Mining and Energy in a caretaker capacity, announced that the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) had extended the operating license for Naftna industrija Srbije (NIS) until October 30, thereby enabling the company to continue its business operations and the Pancevo Oil Refinery to remain active.

Djedovic Handanovic assessed that this further extension of the US OFAC operating license for NIS was good news for Serbia, especially considering the onset of the winter season.

According to the minister, the situation remains highly challenging due to geopolitical circumstances, rising energy prices, difficult logistical conditions, low water levels on the Danube, and issues regarding the import of petroleum products, the Government’s website reports.

– That is why we responded by releasing 5,000 tons of diesel from state reserves onto the market, alongside the excise duty reductions we have been implementing for months – the minister stated.

– The new 30-day license extension allows the Pancevo Oil Refinery to continue operations and produce maximum quantities of petroleum products, diesel, gasoline, kerosene and fuel oil, the latter being particularly important for the upcoming heating season.

Djedovic Handanovic noted that discussions between OFAC and MOL regarding the transaction are ongoing and will require further time.

– We have completed our part of the work regarding the shareholder agreement, contingent on MOL acquiring NIS and the US approving the deal. In the meantime, we continue to take all necessary measures to ensure a fully supplied market, keep prices under control, and remain ready to respond to any disruptions – the minister concluded.

Naftna industrija Srbije

NIS

OFAC

MOL

Ministry of Energy of Serbia

US Department of the Treasury

NIS operating license