Jadranski Naftovod to Stop Delivering Oil to NIS from Mid-May – Ministry: We are Developing Options in Case of Delivery Cuts

The company Jadranski Naftovod (Janaf) has announced that the sanctions toward Russia encompass the agreement on the transport of crude oil signed with NIS.

It is said that, if no changes occur, the agreement can no longer be realized from mid-May until the sanctions are in effect.

– Janaf does not operate directly in the Russian market, but Council Regulation (EU) 2022/428 of March 15, 2022, amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilizing the situation in Ukraine, encompasses the Agreement on the Transport of Crude Oil that Janaf d. d. signed with NIS a. d. for the period from January 1 to December 31, 2022 – Janaf said in a press release on the impact of the Russian-Ukrainian crisis, published through the Zagreb Stock Exchange, as reported by the Jutarnji List portal.

The agreement, it is further said, “reserves the transport capacities of Janaf under the take-or-pay principle for the transportation of 3.2 million tons, plus/minus 10%, of crude oil, so, unless changes occur, it can no longer be realized from May 15, 2022 until said restriction measures, as proscribed in Council Regulation (EU) 2022/428, are in effect”.

They emphasize that the company is monitoring the developments on a daily basis and that it is in constant communication with the users.

In mid-January 2022, Janaf announced that it had signed an agreement on the transport of crude oil in 2022 with NIS.

The majority owner of NIS is the Russian Gazpromneft, which owns a 56.15% stock, whereas the Republic of Serbia owns 29.87%, and small shareholders 13.98%, the Croatian portal reminds.

Ministry: Options in case of Janaf oil delivery cuts being prepared

Securing a stable supply of petroleum products is a priority for the Ministry of Mining and Energy of Serbia, which is analyzing all the options and solutions for a secure supply of the local market in case of delivery cuts of crude oil to Naftna Industrija Srbije (NIS) from Janaf, it was announced today.

Potential directions of supply of crude oil and petroleum products from the terminals and refineries in the area, as well as the available legal, business, logistics and technical possibilities for the import of crude oil and products, including through pipelines, by rail, cisterns and river transport, that is, through ports, are being analyzed at the moment, Beta reports.

The effects of the changes in the manner of supply on the operations of the local refinery capacities, the possibilities of using domestic oil and increasing the reserves of oil and petroleum products in storage facilities are also being considered, so as to respond in the best way possible to potential delivery cuts through Janaf, says the press release of the Ministry of Mining and Energy.

All the possibilities of having the supply through Janaf extended will be considered, while taking measures to create the reserves in cases of potential disturbances.

The transport of crude oil to Serbia is done primarily through the Janaf pipeline, which connects the Port of Omisalj with the transport system of the public company Transnafta, from where it is delivered to the refineries in Novi Sad and Pancevo.

JANAF d.d. Zagreb

Zagrebačka burza d.d. Zagreb

NIS a.d. Novi Sad

Ministarstvo rudarstva i energetike Republike Srbije

Jadranski naftovod

Janaf

NIS

Ministry of Mining and Energy

Zagreb Stock Exchange

Gazpromneft

Gazprom neft

sanctions

transport of crude oil