Russia is reportedly prepared to sell a 6% stake in Serbian oil company Naftna Industrija Srbije (NIS) to Serbia, reducing its shareholding in the company to below 50%, as part of efforts to comply with US sanctions targeting entities linked to Russia's energy sector. Local news outlet Kompas-info reported on February 18 that Moscow was prepared to sell a portion of its shares in response to sanctions imposed by the US and the UK in January.

The revelation follows a high-level meeting in Moscow between Serbian Foreign Minister Djuric and Russian Foreign Minister Sergey Lavrov on February 17. The talks focused on the implications of US sanctions on Russian-owned NIS and Serbia's energy sector, with both sides seeking a path forward to protect the stability of Serbia’s energy infrastructure and geopolitical relations.

The Russian government is said to have communicated through official channels that it is willing to reduce its stake in NIS to 49%. According to Kompas' sources, this is the only concession that Russia is prepared to make, with no current interest in selling NIS entirely. The Serbian government, meanwhile, is facing mounting pressure to remove Gazprom's stake entirely.

Serbia is considering a range of solutions to ensure NIS’s continued operations, all of which carry economic and geopolitical risks. One option involves a foreign oil company, potentially Hungary’s MOL, purchasing oil for NIS on the global market and reselling it at a more favourable price after processing at NIS refineries. However, it remains unclear whether such a transaction would bypass US sanctions on the Russian company.

Another possibility that is reportedly under consideration is the creation of a Serbian government agency to handle oil imports, reselling the product to NIS and other local companies. A third proposal involves the establishment of a private company tasked with purchasing and importing crude oil, which would then be resold to NIS. As with other solutions, it is uncertain whether this approach would successfuly evade US sanctions.

Nationalising NIS has also been discussed as an option, but Serbia's government has publicly said it is against this, fearing it could damage the country’s relations with Russia and put it in a sticky situation for upcoming negotiations with Moscow over gas supply contracts. Serbia remains almost entirely dependent on Russia for its gas supply.

Meanwhile, employees at NIS were notified that their February salaries would be paid in advance, local media reported, citing Kompas-info. The move is aimed at addressing concerns about potential cash flow problems stemming from the suspension of international payments due to the US sanctions. The February salary will be paid early on February 19, with March salaries potentially being advanced as well, the company informed its staff.