Djedovic Handanovic: New request sent for delay of US sanctions on NIS

BELGRADE - The Serbian government has sent a new request to the US Treasury Department's Office of Foreign Assets Control (OFAC) in support of a request by Serbia's Russian majority-owned oil company NIS for an extension of an operating licence expiring on July 29 by 180 more days, Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic said on Thursday.

"In the past month, as well as all the way since January, when US sanctions on NIS were announced, we have consistently been defending our position that sanctions would be very bad for energy stability in Serbia and the region and produce significant negative consequences for our country, our citizens and our economy, as well as the entire region," Djedovic Handanovic said in a statement released by her ministry.

"We again presented to the US administration all the facts, including all potential negative effects, as well as the measures that are being taken to bring NIS to compliance with the conditions set regarding Gazprom neft's ownership," the minister said.

Sanctions would seriously threaten the economy, as well as energy security and stability in Serbia and the region, she noted.

Extending the licence by 180 days would help NIS to acquire crude oil for the Pancevo oil refinery on commercially viable grounds and support energy stability in the country and the region, she said.

"In collaboration with US and Russian partners, the Government of Serbia remains committed to finding a lasting and sustainable solution for NIS that would enable continued and secure crude oil supplies and unobstructed operations of the Pancevo refinery," Djedovic Handanovic added.

She also thanked the Hungarian government for its continued support in the quest for a long-term solution for NIS.