Serbia's fuel imports fall 75% as Danube drought hits barge deliveries

AI digestMimile.ai EditorialJuly 22, 2026 at 09:50 PM

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Serbia's fuel imports dropped to 25% of their July target as low Danube River levels choked barge deliveries, Energy Minister Dubravka Djedovic Handanovic said Wednesday. The logistics crisis exposed the country's reliance on the single domestic refinery operated by U.S.-sanctioned NIS.

Danube Drought

Danube water levels hit record lows this week in Hungary, Serbia and Romania, forcing barges and tankers to operate at 30-40% of capacity. The minister said fuel has been redirected to road and rail, further pushing up already "exceptionally high" prices.

NIS Sanctions Deadline

The U.S. Office of Foreign Assets Control sanctioned NIS in October 2025 over Russia's war in Ukraine, demanding Russian majority owners Gazprom Neft and Gazprom divest their shares. OFAC granted several waivers allowing NIS to import crude via Croatia's Janaf pipeline while Hungary's MOL completes its acquisition of the Russian stake. The current waiver expires on July 31.

Strategic Reserves

Serbia holds about 269,000 metric tons of diesel in state strategic reserves. The NIS refinery in Pancevo, with annual capacity of 4.8 million tons, supplies roughly 80% of the country's demand. "If the NIS license is not extended, supply will depend entirely on state reserves," Djedovic Handanovic said.

What's Next

MOL has until July 31 to complete its purchase of the combined 56% stake from Gazprom Neft and Gazprom. It remains unclear whether OFAC will extend the NIS waiver or the sale deadline, leaving Serbia's fuel supply vulnerable to disruption.

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Serbia's fuel imports fall 75% as Danube drought hits barge deliveries

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Hydrocarbon Processing

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Serbia's fuel imports fall 75% as Danube drought hits barge deliveries

Danube Drought

NIS Sanctions Deadline

Strategic Reserves

What's Next

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