NIS refinery in Pančevo
Serbian Energy Minister Dubravka Đedović Handanović met in Belgrade with Zsolt Hernádi, CEO of the MOL Group, to discuss the sale and future of the Serbian Oil Company (NIS), the minister announced on her Instagram page.
The parties discussed the future operation and ownership structure of NIS on Saturday. She added:
Reaching an agreement is not easy, and there are “red lines” that Serbia must not cross.
She emphasized that the Serbian side’s goal is to maintain full-capacity operations at the oil refinery in Pančevo. She also insisted that MOL assume or fulfill the obligations that NIS had previously entered into and that are important for Serbia. The issue of the company’s future leadership was also raised during the negotiations. Talks will continue in Belgrade in the coming days, while MOL is also negotiating with Gazprom Neft and Gazprom.
The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has extended NIS’s operating license until June 16.
The extension allows the company to continue operating despite the sanctions. This is crucial because a shutdown of the company would not only derail a potential takeover but also jeopardize Serbia’s energy supply. Furthermore, the extension gives the parties time to finalize the so-called Hungarian oil deal of the century.
The negotiations surrounding NIS are significant both economically and geopolitically.
For the Serbian side, the security of the energy supply is the top priority, while for MOL, a strategically important opportunity for regional expansion is emerging.
However, a final agreement can only be reached if the requirements of U.S. sanctions, the divestment of Russian holdings, and Serbian national interests can be reconciled.
The refinery in Pančevo is operated by NIS—which is subject to U.S. sanctions against the Russian energy sector—and is Serbia’s largest fuel supplier. U.S. authorities had previously set a deadline for the company to sell its Russian stakes.
Gazprom and Gazprom Neft together hold more than a 50% stake in the company. MOL signed a binding agreement in January to acquire the Russian stakes. The United Arab Emirates’ state-owned oil company, ADNOC, could participate in the transaction as a minority investor.
The Serbian government holds a stake of around 30% in NIS; the remainder is owned by smaller shareholders and employees.
Via MTI, vg.hu; Featured image: Naftna industrija Srbije NIS/Wikimedia Commons
