Serbia prepares to buy Russian stakes in oil giant amid sanctions threat
The government in Belgrade has sufficient funds to purchase the shares owned by Russian corporations in the Serbian oil company NIS, reports the Russian daily "Kommersant". This declaration was made amid concerns about possible US sanctions against NIS. However, the Serbian authorities are keen to avoid such an outcome.
The President of Serbia, Aleksandar Vučić, confirmed in his speech the country's readiness to buy out Gazprom and Gazprom Neft's shares in NIS. According to estimates, the company is valued at approximately one billion euros, of which about 600 million euros would be required to acquire the Russian shares.
Serbia and Russia as partners?
Vučić directly addressed the US administration, questioning the effectiveness of potential sanctions. The Serbian leader argued, "You want to punish them, and we will pay them a part of the ownership and they will immediately receive 500, 600, or 700 million euros." Such a transaction could paradoxically financially strengthen Russian corporations.
Belgrade maintains close economic relations with Moscow, particularly in the energy sector. Sanctions could significantly affect the situation of NIS, one of the largest vertically integrated energy companies in Southeastern Europe. Currently, Gazprom Neft controls 50 percent of the company's shares, while Gazprom holds an additional 6.15 percent.
Western sanctions may lose their strength
Vučić first mentioned the possibility of sanctions on NIS in December last year. Since then, he has engaged in a series of consultations with high-level representatives from both sides. He has met, among others, the Russian Foreign Minister Sergey Lavrov and US Deputy Secretary of State Jose Fernandez.
Following discussions with American diplomats, the President of Serbia delivered concerning news to his citizens, stating that "there is no good news." This indicates the potential introduction of the anticipated restrictions despite Serbian efforts to avert them.
