The foreign ministers of Serbia and Russia met on February 17 to discuss the potential impact of US sanctions on Serbia’s state-owned oil company, Naftna Industrija Srbije (NIS), which is majority-owned by Russia’s Gazprom Neft.

The sanctions, announced by the United States and the United Kingdom on January 10, target entities linked to Russia's energy sector, including NIS, freezing the company’s operational model and mandating that Gazprom Neft divest its 50% stake within 45 days. The Serbian government has yet to announce a definitive plan regarding the company’s future ownership.

Speaking after the meeting with Serbian Foreign Minister Marko Duric, Russian Foreign Minister Sergey Lavrov said that Russia and Serbia would continue to cooperate closely to mitigate the impact of the sanctions on their joint energy projects. He condemned what he called "unfair" competitive practices by certain Western powers seeking to disrupt their partnership.

"Today, we face a situation where those who are accustomed to unfair competition are trying to obstruct our joint enterprise NIS through sanctions," Lavrov told reporters in Moscow. "It [NIS] is a leading enterprise of the Serbian economy, and it is literally being forced to give up on cooperating with a Russian investor."

Lavrov stressed that Russia is Serbia's largest supplier of natural gas, accounting for up to 85% of the country's demand, and highlighted the longstanding energy cooperation between the two nations. He claimed that Western countries were attempting to undermine this relationship with sanctions.

"We have decided to continue working together so as not to harm our mutual interests," he added. "Our cooperation in energy, as well as in health, innovation and high technologies, will remain a priority."

The sanctions imposed on NIS have raised questions about Serbia’s future energy policy and foreign alliances. The Serbian government has been weighing its options, which include nationalising the company, repurchasing Gazprom's shares, or seeking new foreign ownership to avoid the sanctions.

In a statement, Lavrov further criticised Western countries for allegedly interfering in Serbia’s domestic politics, specifically through non-governmental organisations and foreign aid. He reaffirmed Russia's support for Serbia in its ongoing disputes over Kosovo and emphasised Russia's commitment to protecting Serbia's sovereignty.

"The West's actions ignore the interests of the citizens of Serbia and attempt to destabilise the country," Lavrov said, referring also to the ongoing student protests in Serbia. Russian politicians have repeatedly claimed that the protests are part of a foreign-backed effort to instigate a ‘colour revolution’ in Serbia, a narrative the government in Belgrade likes to parrot too.

Serbia has formally requested that the United States delay its sanctions on NIS for at least 90 days, citing concerns over the company’s critical role in regional energy stability. As of now, Serbia has not publicly committed to a course of action regarding NIS's ownership but faces significant geopolitical and economic decisions in the wake of the sanctions.

Duric, who is on a two-day official visit to Russia, expressed his optimism after the discussions. He reiterated that Serbia values its relationship with Russia but remains committed to its European path. He also stressed the need to protect Serbian citizens from the adverse effects of the sanctions.

"We do not want to be collateral damage of sanctions against Russia," Duric said. "The most important thing is that the citizens of Serbia do not suffer."

President Aleksandar Vuсic, in a separate statement, acknowledged the difficulty of reversing the sanctions but expressed hope for a resolution. "I am not convinced that the United States will so easily change its decision, although I hope so," he said.

The ongoing tensions between Russia and Western powers over the fate of NIS could force a shift in Serbia's foreign policy alignment, with consequences for the country’s future relations with both Moscow and the West.