The fallout from the shutdown of Serbia's only oil refinery could last years, experts told AFP, putting thousands of jobs and the state's budget at risk -- as well as exposing the country to further sanctions.

The Petroleum Industry of Serbia's (NIS) refinery has been unable to receive crude oil since October 9 after its Russian majority owners were swept up in US sanctions over Moscow's invasion of Ukraine.

Washington is demanding a complete exit of Russian shareholders, but talks over its potential sale have dragged on, forcing the company to shut the refinery on Tuesday.

"Any reduction in its activity would have a substantial impact on overall economic activity," Dejan Soskic, an economics professor and former central bank governor, told AFP.

The closure could shrink economic growth

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