Belgrade poised to counter U.S. sanctions with major NIS buyout
The government in Belgrade has funds to buy out the shares of Russian corporations in the Serbian oil company NIS, reports the Russian newspaper "Kommersant." This statement comes in the context of possible U.S. sanctions against the company. However, the authorities in Serbia would prefer to avoid such a scenario.
Serbia's president, Aleksandar Vučić, confirmed in his speech that Serbia is ready to buy the shares of Gazprom and Gazprom Neft in NIS. According to estimates, the entire company is valued at approximately 1 billion euros, with about 600 million euros needed to buy the Russian shares.
Serbia and Russia as partners?
Vučić directly addressed the American administration, questioning the effectiveness of potential sanctions. The Serbian leader argues that imposing sanctions would lead to a situation where, "you want to punish them, yet we will pay them a portion of ownership and they will immediately receive 500, 600, or 700 million euros." Such a transaction could paradoxically strengthen Russian corporations financially.
Belgrade maintains close economic ties with Moscow, which are especially visible in the energy sector. Sanctions could significantly impact the situation of NIS, one of the largest vertically integrated energy companies in Southeast Europe. Currently, Gazprom Neft controls 50% of the company's shares, and Gazprom holds an additional 6.15%.
Western sanctions may lose their strength
Vučić announced the possibility of imposing sanctions on NIS in December of last year. Since then, he has conducted a series of consultations with high-ranking representatives from both sides. He met with the head of the Russian Ministry of Foreign Affairs, Sergey Lavrov, and U.S. Deputy Secretary of State Jose Fernandez, among others.
After talks with American diplomats, the President of Serbia conveyed troubling news to his citizens, saying there is "no good news." This indicates the possibility of the announced restrictions being implemented, despite Serbian efforts to avoid them.
