Serbia weighs buying NIS strategic assets as global oil volatility tests fuel security

Serbia is considering a plan to strengthen state control over strategic energy assets held by NIS, positioning the initiative as part of a broader effort to protect domestic fuel security during periods of heightened volatility in global oil markets. The discussions underscore how market uncertainty can quickly translate into policy pressure for governments that rely on key operators to keep prices stable and supply uninterrupted.

Talks focus on potential stake purchase and renewables

The issue was raised in talks between Energy Minister Dubravka Đedović and NIS CEO Kirill Tyurdenev. The government said it is particularly interested in acquiring the 50% stake in the renewable energy facility currently owned by NIS, according to the Ministry.

NIS described as central to price formation and stability

Officials characterized NIS (Naftna industrija Srbije) as a key pillar of Serbia’s energy security system, citing its dominant position in shaping wholesale fuel prices. In that context, the government emphasized the need for continued coordination with the company to help maintain stability in the domestic fuel market.

Operational outlook and supply continuity

The Ministry said NIS processes about 20% of domestically produced crude oil and currently operates under conditions that allow stable business performance. Authorities also pointed to ongoing cooperation with NIS and its readiness to respond to state requests during market uncertainty.

On near-term operations, the Ministry stated that crude oil processing at the refinery is expected to reach around 326,000 tons in May, close to full capacity. It added that contracted crude oil deliveries for the month are approximately 240,000 tons, designed to ensure continuity of supply.

Fuel distribution guarantees and reserve build-up

Beyond production volumes, Serbia asked NIS to guarantee uninterrupted fuel distribution across the country, including smaller municipalities that depend on company supply chains. The government also called for fuel reserves to be increased to the highest possible level in preparation for potential disruptions.

Emergency measures already deployed despite budget trade-offs

Serbia has already introduced emergency steps aimed at stabilizing the market. These include releasing 65,000 tons of diesel from state reserves and cutting excise duties on fuel by 25%. The government acknowledged that these measures have reduced budget revenues but said they were necessary to prevent shortages and support domestic fuel price stability.