BELGRADE, Nov. 25 (Xinhua) -- Naftna Industrija Srbije (NIS), Serbia's only oil refinery, could be forced to halt operations within days unless the U.S. Treasury renews sanctions exemptions for its Russian-owned operator, President Aleksandar Vucic warned on Tuesday.
Vucic said that NIS, majority-owned by Russia's Gazprom Neft, has already reduced output and may be completely shut down by Thursday unless the U.S. Office of Foreign Assets Control (OFAC) approves a new operating license. Restarting production would require at least 20 days, he added.
NIS filed its latest request for an OFAC license on Nov. 18, after U.S. sanctions were fully applied to the company in October.
The president also cautioned of wider economic fallout, noting that Serbia's central bank and commercial lenders have been warned they could face secondary sanctions because of NIS's ownership structure, a risk he said could endanger the country's banking system.
The Serbian government insisted on Monday that national fuel reserves are sufficient to prevent shortages. However, a prolonged shutdown would leave the country without domestic refining capacity.
NIS is 44.85 percent owned by Gazprom Neft. The Serbian government holds about 30 percent. ■
