Energy Crisis Looms as Hungary Steps Up Support for Serbia
Hungary has committed to significantly increasing oil shipments to Serbia as the Balkan nation faces a potential energy crisis following US sanctions on its Russian-owned oil refinery. The announcement came during Hungarian Foreign Minister Peter Szijjarto's visit to Belgrade on Wednesday, where he assured Serbian officials of continued energy support.
Sanctions Trigger Refinery Shutdown Threat
The crisis emerged after long-delayed US sanctions took effect on October 9, 2025, targeting Russian energy interests following the 2022 invasion of Ukraine. The Petroleum Industry of Serbia (NIS), which operates Serbia's only oil refinery, warned that without immediate additional supplies, its Pancevo plant would face complete shutdown before the end of the week.
Hungarian energy giant MOL has already more than doubled oil exports to Serbia since November, with further increases planned to help fill the energy gap. "Serbia can always count on Hungary to secure its energy needs. We will never leave you on your own," Szijjarto declared after meeting with his Serbian counterpart.
Payment Systems Disrupted as Deadline Approaches
The sanctions have already caused significant disruptions at NIS petrol stations, where global Mastercard and Visa payments have been blocked. While cash and domestic Dina card payments backed by the National Bank of Serbia remain functional, the payment restrictions highlight the broader impact of the sanctions.
Serbian President Aleksandar Vucic has given Russian stakeholders and potential buyers, including bidders from Hungary and the United Arab Emirates, 50 days to reach a deal that would meet US demands for Russia to exit the company's ownership. The National Bank of Serbia has stated it will cease working with NIS if no agreement is reached within this deadline.
Serbia originally sold a controlling stake in NIS to Russia's Gazprom and Gazprom Neft for 400 million euros in 2008. As negotiations continue, Serbian officials have increasingly indicated a possible state takeover, despite previously rejecting this option due to Serbia's close ties with Moscow.
The situation remains fluid, with NIS having requested a temporary waiver from US sanctions while talks proceed, though Washington has yet to respond to this appeal.
