Serbian President Aleksandar Vucic has urged Russia and Hungary to finalize the sale of a major Serbian oil company caught up in U.S. sanctions over Moscow’s invasion of Ukraine.

The Petroleum Industry of Serbia (NIS), majority-owned by Russian firms, had to temporarily shut down its Pancevo refinery in early December. The facility is Serbia’s only oil refinery and supplies about 80% of the country’s fuel needs.

Although the U.S. has demanded the complete removal of Russian ownership from NIS, Belgrade said Washington has granted a temporary reprieve allowing the refinery to resume operations until January 23. Gazprom is reportedly in talks with Hungary’s MOL to sell its 56% stake, held through subsidiaries Gazprom Neft and Intelligence.

“I hope the Russians and Hungarians will finish their work before the January 23 deadline,” Vucic told reporters Thursday. He added that crude oil imports could start again by January 5, with full refinery operations expected by January 17.

The sanctions have hit Serbia hard, a key Kremlin ally that has not imposed its own sanctions on Russia. NIS employs around 13,500 people and contributed over 2 billion euros in taxes in 2024, nearly 12% of Serbia’s national budget.

Vucic previously stated that if no agreement on the Russian stake is reached by mid-January, the Serbian government would step in to prevent disruption to the nation’s energy supply.