Sanctions to NIS will not affect Montenegro, but it is to be expected that fuel will become more expensive

The sanctions imposed by the United States yesterday on the Oil Industry of Serbia (NIS), majority owned by Russian oil companies, cannot affect the fuel supply in Montenegro, claims Draško Striković from the Association of Oil Companies.

"As you can see for yourself, the markets are already preparing for the implementation of general sanctions against the export of Russian oil in the world, so this will probably affect the increase in prices in the world and on the markets, which will certainly be reflected on the Montenegrin market as well ", said Striković.

Striković says that already on Tuesday, according to current trends on the world market, we can expect a slight increase in the price of fuel, but that there could be a more noticeable increase in prices if the Government passes a decree on the beginning of the implementation of the Law on Security of Supply, by which the state will provide supplies, and which foresees an additional rising fuel prices.

"Given that we expect growth in the coming period due to US sanctions, it may happen that the Government of Montenegro prolongs the start of the application of compensation under the Law on Security of Supply, which would mitigate to some extent a larger increase in the coming period. In the event that the Government already in this accounting period, increase the fee for security of supply of oil derivatives, that would mean an additional increase of three cents to the existing 2-3 cents that are expected," Striković points out.

And while we in Montenegro will feel the US sanctions on oil companies through higher fuel prices, the citizens of our neighboring Serbia are using gas from reserves as of today, because they can no longer count on gas from Azerbaijan. This was announced by the President of Serbia, Aleksandar Vučić, who met today with the US Deputy Secretary of State for Management and Resources, Richard Verma.

The American official emphasized that the sanctions on NIS were not directed against Serbia, but against Russia, and Vučić responded that the sanctions were bad news even though Serbia was not a target.

And in order not to block the import of oil to Serbia, the majority owners, the Russian oil companies, must leave NIS within 45 days, ending on February 25.