Energy expert: Serbia prioritizes Kremlin relationship over NIS nationalization

According to unofficial information from Nova Ekonomija, sanctions against NIS are expected to be delayed by a week. Kapor told N1 that high-level negotiations are undoubtedly underway in the United States, involving not only representatives of the Serbian Government but also Russian lawyers and other stakeholders, such as Hungary or Croatia’s crude oil transportation company JANAF.

“If sanctions are fully implemented, it will be a major blow to the Serbian economy, and not just the economy, but also the political landscape. The US administration is very aware of this. They are, of course, weighing the risks and benefits of these sanctions. Because, let’s be clear, the sanctions aren’t just about financing the aggression in Ukraine, they are also about propaganda activities within Serbia itself and in the region,” Kapor said.

He pointed out that even without full sanctions in effect, certain consequences are already being felt, as foreign companies are refusing to enter into long-term contracts with NIS.

“Under the Energy Law, the Defense Law, Article 58 of the Constitution, and so on, Serbia has the right to temporarily nationalize NIS if that is in the interest of Serbian citizens. This is indeed in the interest of Serbian citizens, but the Serbian Government and the president himself are refusing to do so, and that says a lot about the our state authorities’ attitude toward the representatives of the Kremlin,” Kapor emphasized.

He added that he doesn’t expect this policy to change unless the government, as he put it, receives a green light from the Kremlin.

Kapor said that he would not speculate on various scenarios should full sanctions come into force, as there is no other country in Europe, apart from Belarus, facing this kind of sanctions.

“So, unfortunately, we are in this situation, again, because we don’t pursue an independent foreign policy but rather serve the interests of other states,” he assessed, adding that he doesn't expect a repeat of the situation from the 1990s, but that the costs of transporting oil derivatives to Serbia will certainly increase.