Vucic: NIS oil refinery has still not been shut down, running in hot circulation mode

BELGRADE - Serbian President Aleksandar Vucic announced on Tuesday the NIS oil refinery had still not been shut down, but that it had switched to a lower mode of operation and would completely halt operations in four days unless a new operating licence was obtained from the US Office of Foreign Assets Control (OFAC).

Due to its Russian-majority ownership, Serbia's oil company NIS has been under US sanctions since October 9.

"We want to inform you that the NIS oil refinery is in the technological process of hot circulation," Vucic said in an extraordinary public address from the Presidency of Serbia.

"It has still not been closed or shut down, but that is already a lower mode of operation compared to the usual one," he said.

"We were hoping and expecting to receive the licence yesterday but, based on the many discussions we had last night... ...with various US partners, we have come to the conclusion that there are more things they want to hear, see and obtain so that they can consider and, potentially, adopt a positive decision on granting an operating licence for an upcoming period of 45 to 60 days," Vucic said.

He noted that US Thanksgiving Day was on Thursday.

"We may be able to change something today or tomorrow, (otherwise) the refinery will halt operations on Thursday," Vucic said.

On November 18, NIS submitted to the OFAC a new request for a special licence that would enable the firm to operate without obstructions.

The previous licence, which was issued on November 14 and expires on February 13, approves talks between NIS shareholders and other interested parties about changes to the company's ownership structure.