Serbia’s government held an emergency session on November 16 to decide whether to nationalise oil company NIS after the United States rejected a request to extend the firm’s operating licence and demanded a full exit of its Russian owners, officials said.

NIS, majority-owned by Russia’s Gazprom subsidiaries, operates Serbia’s only oil refinery in Pancevo and the country’s largest fuel retail network. US sanctions on the company came into force on October 9 after several delays, leaving Belgrade facing the prospect of a refinery shutdown in the middle of winter.

Energy Minister Dubravka Djedovic Handanovic said Washington had refused a proposal for a change in management at NIS and insisted instead on a complete Russian withdrawal. “The American administration clearly said it wants Russian shareholders out of NIS,” she told reporters on November 15. She added that while the US granted approval for ownership talks until February 13, it did not allow the refinery to continue operating in the meantime.

President Aleksandar Vucic warned that without oil flows until mid-February, Serbia’s energy system faced “complete collapse”. Addressing the government’s extraordinary session on November 16, he said the country must decide within a week. “We have nothing to wait for,” Vucic said. “Without the refinery in Pancevo, we have no life.”

The government has been weighing its options, from purchasing the Russian stake, to bankruptcy proceedings, to nationalisation. Vucic said Serbia would support ongoing talks between Russian owners and potential Asian and European buyers, and was prepared to offer Moscow a higher price if negotiations stall. He repeatedly stressed he wanted to avoid “confiscation, nationalisation and seizure of property”, but said a decision must come within days.

Djedovic Handanovic, who offered her resignation, said the situation was untenable. “I don’t see how we can overcome this without the refinery. Even bakeries depend on it,” she said, adding that Serbia had been “very patient” with its Russian partners but could not wait beyond three or four days for progress.

Finance Minister Sinisa Mali signalled growing frustration with Moscow, saying Serbia had shown “enough understanding” and now had to “take matters into our own hands” to protect economic stability. The standoff threatens Serbia’s investment-grade credit rating and investor confidence, he warned.

Belgrade’s room for manoeuvre is complicated by its dependence on Russian gas supplies delivered via the Balkan Stream pipeline. The Kremlin could retaliate if Belgrade moves to nationalise NIS, a key Russian asset in the Balkans.

Vucic said he would appeal directly to Washington for help in finding a solution, despite blaming US sanctions for the crisis. “I want everyone to see that we don’t want to steal anything from anyone,” he said. “But we have the right to live.”

The government is expected to decide on the company’s future within the next seven days.