Russia is prepared to relinquish control of Serbia’s oil company, NIS, to a third party in an effort to resolve US sanctions that threaten the firm’s operations and Serbia’s energy security, top officials in Belgrade said on November 11.

The US Office of Foreign Assets Control (OFAC) imposed sanctions on NIS on October 9, ending months of temporary licences. NIS supplies more than 80% of Serbia’s petrol and diesel and plays a central role in the country’s energy system.

Serbia’s Minister of Mining and Energy Dubravka Đedović Handanović said on November 11 that NIS’s Russian owners have submitted a formal request to OFAC seeking an extension of the company’s operating licence. The request, she said, is based on ongoing negotiations with a third party that could take over control of the company.

“The request states that the Russian side is ready to hand over control and influence over the NIS company to a third party,” Đedović Handanović wrote in an Instagram post. “The State of Serbia has officially supported this request.”

She added that OFAC had already issued preliminary comments and that Belgrade expected a response “within the week.” The minister stressed that Serbia would not allow disruptions to domestic fuel supply.

President Aleksandar Vucic confirmed the minister’s statement in an interview with pro-government broadcaster Pink TV, saying Russia was in talks with a third party regarding the management structure of NIS. He declined to name potential buyers, adding that it was unclear whether the US authorities would be satisfied with the proposed arrangement or demand deeper changes to the ownership structure.

“We said that we will accept each of their requests, but they must know that time is running out,” Vucic said.

NIS, or Naftna Industrija Srbije, is owned by Russia’s Gazprom Neft, which holds 44.9% following a recent internal restructuring. In September, Gazprom transferred its own 11.3% stake to a St. Petersburg-based affiliate, Intelligence. The Serbian state owns about 30%, with the rest held by minority shareholders.

The potential third-party buyer has not been publicly identified. Media speculation has pointed to possible interest from investors in the United Arab Emirates, while earlier reports mentioned Azerbaijan’s SOCAR or Hungary’s MOL as potential candidates.

For Russia, NIS is one of its few strategic assets in the Balkans, alongside long-term gas supply contracts. For Serbia, however, the sanctions have exposed the vulnerability of its energy system and the political cost of maintaining close ties with Moscow. A reduction in Gazprom’s role would weaken Russia’s influence in the region and could hasten Serbia’s alignment with the European Union. But the transition could also be costly and politically disruptive.

The sanctions have come at a difficult time for Serbia, which is grappling with political unrest, reduced investor confidence and energy uncertainty. Fuel supply risks and banking complications have added pressure on the government.

The situation has also been complicated by gas supply talks. In mid-October, Moscow offered only a short-term extension to Serbia’s gas contract, undermining hopes for a longer-term deal. The move came shortly after the US imposed sanctions on NIS, highlighting Russia’s intent to retain leverage amid negotiations over the company’s future.

Serbia depends on Russia for around 90% of its gas imports, most of which transit through EU member states Bulgaria and Hungary. With the European Union preparing to ban Russian gas transit to third countries, Belgrade is facing mounting energy security risks.

For years, Serbia has paid a high price for its close political and energy ties with Russia. Belgrade’s reluctance to distance itself from Moscow has left it exposed to sanctions and reliant on Russian goodwill for energy security. While the government has explored ways to buy out Gazprom’s share in NIS, progress has been slow, with prior resistance from the Russian side.

Moscow’s reported readiness to cede control of NIS marks a rare concession. A sale to a neutral or Western-aligned investor would reduce Russia’s influence in the Balkans, ease pressure on Serbia’s energy sector and potentially strengthen Belgrade’s path toward closer integration with the European Union.