NIS permit expires today as Washington weighs extension

The special permit allowing Naftna Industrija Srbije (NIS) to keep operating under U.S. authorization is set to expire today, placing Serbia's fuel supply and the future ownership of the company at the centre of diplomatic and market attention.

Officials and industry representatives are awaiting a decision from Washington’s Office of Foreign Assets Control (OFAC). Bojan Stanić of the Serbian Chamber of Commerce said OFAC could extend the permit for more than a month, but added that there is no official confirmation yet.

Application and energy-security concerns

On 24 October, NIS submitted a fresh application for a special licence that would allow the company to continue operations after the current authorisation expires. In its filing, the company stressed the importance of uninterrupted supply for the domestic market and the role of the Pančevo refinery in Serbia’s energy stability.

Stanić told K1 TV that broader international developments — including signs of possible thawing in relations between Washington and Moscow and movements on global energy markets — may influence the U.S. administration’s choice. He warned that rising oil prices could push inflation higher and increase costs for both businesses and households, meaning supply stability remains a priority regardless of who owns NIS.

“Above all, it was a very successful company; even in such circumstances, it managed to survive and stabilise the market. The fact that the permit to operate has been repeatedly extended – and that the risk of sanctions being imposed did not materialise – allowed the company to stabilise,” Stanić said.

Even if OFAC grants an extension, that would only solve the immediate operational problem; it would not settle NIS’s long-term status. The company remains subject to U.S. sanctions because of its Russian ownership, and any change in ownership would require separate steps and approvals from U.S. authorities.

Photo: press material from the event