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Stock impact report

US sanctions hit Serbian oil firm NIS' operations despite waivers [Yahoo! Finance Canada]

OMV AG BEARER SHS S/ADR (OMVKY) 
NIS is majority-owned by Russia's Gazprom Neft and Gazprom and as such is one of Russia's last remaining oil assets in Europe. It is crucial to Serbia's energy security as it operates the Balkan country's only oil refinery. It is hard for other companies to work around NIS because its dominant position in the Serbian market is compounded by logistical constraints in the landlocked country. NIS supplies around 80% of Serbia's gasoline and diesel, and 90% or more of jet fuel and heavy fuel oil, according to one trader. But the company's recent struggles highlight what could come if U.S. sanctions take effect, with President Aleksandar Vucic warning that Serbia could lose access to oil imports. The U.S. Treasury's Office of Foreign Assets Control designated NIS AD Novi Sad a sanctioned entity on January 10, giving Gazprom Neft 45 days to exit its investment, before extending that deadline with back-to-back 30-day waivers. NIS, which usually buys crude in long-term contracts, c Show less Read more
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