The Serbian oil company NIS, majority-owned by Russia’s Gazprom, has officially decided to exit the Bulgarian market, BGNES reported. Its Board of Directors has approved the sale of its local subsidiary due to ongoing difficulties in downstream operations within Bulgaria. Specific details surrounding the deal remain undisclosed, pending further clarity.

NIS currently operates 22 gas stations in Bulgaria under the Gazprom brand. As of the first half of 2025, the company held a 2.6% share in Bulgaria’s overall motor fuel market and a 1.9% share in the retail fuel segment.

Earlier this year, the Serbian firm revealed it was considering withdrawing from both Bulgaria and Romania, citing persistent operational challenges. In Romania, it manages a network of 19 gas stations. So far, NIS has not provided updates regarding its Romanian operations.

This latest development comes just days after the U.S. Department of the Treasury extended - for the fifth time - the temporary suspension of sanctions on NIS by an additional 30 days. The company was first placed under U.S. sanctions on January 10 due to its ownership structure, with Russian state-controlled Gazpromneft holding a majority stake. Washington maintains that the sanctions aim to curtail Russia’s ability to use energy revenues to fund its military efforts in Ukraine.

Gazpromneft, a subsidiary of Gazprom, currently holds 56.15% of NIS, with the remainder controlled by the Serbian government. In 2008, Serbia sold a 51% stake in NIS to Gazpromneft for €400 million. Later, in May 2022, the Russian holding transferred 6% of that share back to its parent company, Gazprom, which is not subject to EU sanctions.

NIS remains Serbia’s sole entity involved in the exploration, extraction, and processing of oil, with operations centered around the Pančevo refinery, which is also owned by Gazpromneft. The company additionally produces natural gas, making it a key player in Serbia’s energy sector.