Serbia’s sole oil refinery, which supplies most of the country’s fuel, faces a potential shutdown due to US sanctions targeting its majority Russian ownership, officials said.

The Petroleum Industry of Serbia (NIS) has been under sanctions since October 9 as part of Washington’s wider measures against Russia’s energy sector following the 2022 invasion of Ukraine. The restrictions leave Belgrade scrambling to prevent an energy crisis.

Energy Minister Dubravka Djedovic Handanovic previously said the Pančevo refinery would operate uninterrupted until November 25. Since then, the government has stocked fuel reserves and contracted additional imports for December.

Analysts warn, however, that imports alone may not replace the refinery’s output, which accounts for roughly 80 percent of national fuel supply.

Negotiations are ongoing with Moscow, and President Aleksandar Vučić indicated there are three potential buyers for NIS, without providing further details. The company has also requested a temporary exemption from the US sanctions, but no response has been reported.

With Russian entities holding nearly half of NIS, Serbian officials have increasingly raised the possibility of a state takeover, though Vučić has rejected seizing a Russian asset. He has offered to buy the Russian stake at above-market rates if negotiations fail.

Serbia, heavily reliant on Russian gas and among the few European nations not sanctioning Moscow, is also engaged in parallel discussions over gas supply contracts. Experts caution that without a resolution, NIS could face bankruptcy, leaving the country vulnerable to fuel shortages.