Janaf Gets U.S. Approval to Supply Oil to Serbia's NIS Until April 28

SEATTLE (Oil Monster): Croatian oil pipeline operator Janaf said it has secured a 30-day extension of the permit from the U.S. Office of Foreign Assets Control (OFAC) to continue transporting oil to Serbia's NIS.

The original permit expired on March 28, and the extension is valid until April 28, Janaf said in a press release on Wednesday.

Janaf has a contract for the transportation of 10 million tonnes of crude to Serbia's Russian-controlled sole refiner from January 1, 2024 to December 31, 2026. Serbia currently imports crude oil only via the Janaf pipeline.

On March 28, the U.S. Department of the Treasury also delayed enforcement of sanctions against NIS by another 30 days.

The U.S. imposed sanctions on NIS, which is majority-owned by Russian companies Gazprom Neft and Gazprom, in January as part of wider sanctions against the Russian energy sector.

The restrictions were initially set to take effect on February 27 but were later delayed until March 28.

When the sanctions were announced, Gazprom Neft held a 50% stake in NIS, while its parent Gazprom had a 6.15% stake. In the meantime, Gazprom Neft transferred a 5.15% stake in NIS to Gazprom, cutting its ownership stake to 44.85%. Gazprom was not targeted by the sanctions.

Serbia's government is the second largest shareholder in NIS with 29.87%.

Janaf's shares last traded on the Zagreb bourse on March 31, closing 0.65% higher at 775 euro ($858).

The Belgrade Stock Exchange halted trading in NIS shares on January 14, citing impact of U.S. sanctions.

Courtesy: www.reuters.com