Potential Ownership Transition for NIS amid U.S. Sanctions
Croatian company Jana seeks stake in Serbian Oil Industry as U.S. sanctions loom.
The Croatian oil company Jadranski naftovod (Janaf) is considering acquiring a stake in the Serbian Oil Industry (NIS), as announced by Croatian Minister of Economy Ante Šušnjar.
This statement is timely as the U.S. sanctions against NIS, linked to its ownership by Russian oil company Gazprom Neft, are set to be lifted in about ten days.
Minister Šušnjar described the potential partnership as a 'natural business symbiosis', asserting that Janaf would seek collaboration rather than dominance in any joint ventures with NIS and its other shareholders.
He remarked during an interview that NIS would need to divest its Russian ownership stake, and suggested that Janaf could be a viable candidate for ownership if mutual understanding is achieved.
As the newly elected president of Janaf’s Assembly, Šušnjar emphasized the complementary relationship between Janaf and NIS, suggesting that future cooperation is inevitable.
In January of the previous year, Janaf and NIS inked a contract for transporting 10 million tons of crude oil until December 2026, marking Janaf's most significant contractual engagement.
Janaf has sought U.S. approval to remain exempt from sanctions, enabling it to continue supplying NIS with crude oil, essential for its oil product production.
The American sanctions, initially intended to take effect on February 27, were postponed for 30 days, allowing Janaf uninterrupted supply to NIS during that period.
Response from Janaf regarding Minister Šušnjar's comments was limited, with the company stating that it is obligated to disclose potentially price-sensitive information strictly in accordance with market capital regulations.
Earlier, a Janaf board member underlined the importance of NIS's stability, revealing that they had coordinated with the Croatian government to seek a U.S. license to continue operational contracts with NIS.
The currently suspended U.S. sanctions against NIS enable ongoing operations, contracts, and other agreements involving NIS and its subsidiaries.
This includes facilitating transactions and transfers not subject to U.S. jurisdiction, which could allow NIS to maintain a degree of autonomy in its operations.
Experts in Serbia have expressed that Janaf, as a state-owned enterprise, might hold enough potential to purchase Russian stakes in NIS, which could align with the company’s operational interests related to the Pančevo Oil Refinery.
However, domestic analysts cast doubt on the likelihood of such a deal being finalized, pointing to Russia's reluctance to relinquish ownership of NIS.
Professor Goran Radosavljević highlighted the uncharacteristic nature of this proposal and emphasized the absence of previous public speculation regarding Zagreb's interest in such an acquisition.
Currently, Gazprom Neft owns 44.85% of NIS, with Gazprom holding an additional 11.3%, while the Serbian state owns 29.87%, and the remainder is distributed among minority shareholders.
This distribution was impacted when Gazprom Neft reduced its stake from 50% in late February, while Gazprom increased its stake from 6% to circumvent EU sanctions that specifically targeted Gazprom Neft.
Radosavljević noted there are multiple potential buyers for the Russian stake in NIS, and several interested parties have emerged, including Janaf.
He underscored that any sale would depend significantly on Russia’s willingness to divest, given that NIS has substantial economic and geopolitical importance to the Russian Federation.
Expectations surrounding the potential delay of U.S. sanctions against NIS remain speculative.
If negotiations between the U.S. and Russia regarding Ukraine progress, opportunities for further extensions may arise, but definitive predictions remain elusive.
Should sanctions be enacted, experts predict that the priority for Moscow would be to ensure a financial return from any necessary divestment, potentially leading to a bidding process involving multiple interested buyers.
The U.S. sanctions against NIS were originally imposed on January 10, with enforcement planned for February 27, but a special license from the U.S. Treasury Department allowed for an extension until March 27.
This statement is timely as the U.S. sanctions against NIS, linked to its ownership by Russian oil company Gazprom Neft, are set to be lifted in about ten days.
Minister Šušnjar described the potential partnership as a 'natural business symbiosis', asserting that Janaf would seek collaboration rather than dominance in any joint ventures with NIS and its other shareholders.
He remarked during an interview that NIS would need to divest its Russian ownership stake, and suggested that Janaf could be a viable candidate for ownership if mutual understanding is achieved.
As the newly elected president of Janaf’s Assembly, Šušnjar emphasized the complementary relationship between Janaf and NIS, suggesting that future cooperation is inevitable.
In January of the previous year, Janaf and NIS inked a contract for transporting 10 million tons of crude oil until December 2026, marking Janaf's most significant contractual engagement.
Janaf has sought U.S. approval to remain exempt from sanctions, enabling it to continue supplying NIS with crude oil, essential for its oil product production.
The American sanctions, initially intended to take effect on February 27, were postponed for 30 days, allowing Janaf uninterrupted supply to NIS during that period.
Response from Janaf regarding Minister Šušnjar's comments was limited, with the company stating that it is obligated to disclose potentially price-sensitive information strictly in accordance with market capital regulations.
Earlier, a Janaf board member underlined the importance of NIS's stability, revealing that they had coordinated with the Croatian government to seek a U.S. license to continue operational contracts with NIS.
The currently suspended U.S. sanctions against NIS enable ongoing operations, contracts, and other agreements involving NIS and its subsidiaries.
This includes facilitating transactions and transfers not subject to U.S. jurisdiction, which could allow NIS to maintain a degree of autonomy in its operations.
Experts in Serbia have expressed that Janaf, as a state-owned enterprise, might hold enough potential to purchase Russian stakes in NIS, which could align with the company’s operational interests related to the Pančevo Oil Refinery.
However, domestic analysts cast doubt on the likelihood of such a deal being finalized, pointing to Russia's reluctance to relinquish ownership of NIS.
Professor Goran Radosavljević highlighted the uncharacteristic nature of this proposal and emphasized the absence of previous public speculation regarding Zagreb's interest in such an acquisition.
Currently, Gazprom Neft owns 44.85% of NIS, with Gazprom holding an additional 11.3%, while the Serbian state owns 29.87%, and the remainder is distributed among minority shareholders.
This distribution was impacted when Gazprom Neft reduced its stake from 50% in late February, while Gazprom increased its stake from 6% to circumvent EU sanctions that specifically targeted Gazprom Neft.
Radosavljević noted there are multiple potential buyers for the Russian stake in NIS, and several interested parties have emerged, including Janaf.
He underscored that any sale would depend significantly on Russia’s willingness to divest, given that NIS has substantial economic and geopolitical importance to the Russian Federation.
Expectations surrounding the potential delay of U.S. sanctions against NIS remain speculative.
If negotiations between the U.S. and Russia regarding Ukraine progress, opportunities for further extensions may arise, but definitive predictions remain elusive.
Should sanctions be enacted, experts predict that the priority for Moscow would be to ensure a financial return from any necessary divestment, potentially leading to a bidding process involving multiple interested buyers.
The U.S. sanctions against NIS were originally imposed on January 10, with enforcement planned for February 27, but a special license from the U.S. Treasury Department allowed for an extension until March 27.
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