Serbia’s Pancevo Refinery Halts Output as US Sanctions Cut Off Crude Supplies

SEATTLE (Oil Monster): Serbia’s only oil refinery, located in Pancevo, has temporarily shut down after US sanctions severed its access to crude oil, state-linked operator Oil Industry of Serbia (NIS) confirmed on December 2. The company, which is majority-owned by Russia’s Gazprom group, has been unable to secure new shipments since October 9, when restrictions blocked crude deliveries through Croatia’s JANAF pipeline.

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The Pancevo facility is central to Serbia’s energy system, supplying roughly two-thirds of the nation’s diesel demand, nearly 74% of gasoline, and more than 95% of its kerosene. NIS said the refinery has stopped processing due to feedstock shortages but remains in standby mode, with staff carrying out required maintenance. Fuel deliveries to the local market are currently being maintained using existing inventories.

Financial pressure is also mounting. The National Bank of Serbia has indicated it may halt transactions with NIS unless Washington grants a special licence, a stance echoed by several commercial lenders. Such a move could disrupt payments to suppliers and employees.

Belgrade is now pressing Moscow to sell its 56.15% stake in NIS within 50 days, with reports naming Abu Dhabi’s ADNOC and Hungary’s MOL as possible buyers. A state takeover remains a last-ditch option due to cost concerns and potential gas-supply repercussions. NIS says it aims to restart full operations once crude becomes available.