Hungarian energy company MOL and the Serbian government have reached a major agreement on the future ownership and governance of Serbia’s oil industry giant NIS, potentially paving the way for MOL to acquire the company’s Russian-controlled majority stake.
The breakthrough comes after months of negotiations driven by US sanctions targeting NIS because of its Russian ownership structure. The deal is seen as a crucial step towards securing Serbia’s fuel supply while preserving the operation of the country’s most important refinery.
Serbian Energy Minister Dubravka Đedović Handanović announced that all outstanding issues between the parties had been resolved and that a compromise had been reached regarding shareholder arrangements and future corporate governance.
Serbia to increase its stake if MOL acquires Russian shares
According to Portfolio, under the agreement, Serbia will purchase an additional 5% stake in NIS if Russia’s Gazprom Neft proceeds with the sale of its 56.15% ownership share to MOL. The transaction would also require approval from the US Office of Foreign Assets Control (OFAC), which oversees sanctions enforcement.
The additional shareholding would strengthen the Serbian state’s influence within the company, giving government representatives expanded powers on the NIS board. According to Serbian officials, these powers would be greater than at any point since the company’s privatisation in 2008 and would allow Serbia to block strategic decisions considered detrimental to national interests.
The arrangement reflects Belgrade’s determination to maintain oversight of a company that plays a central role in the country’s energy security.
MOL guarantees operation of key Serbian refinery
One of Serbia’s main priorities during the negotiations was ensuring uninterrupted domestic fuel supplies. To address these concerns, MOL committed to maintaining the operation of the Pančevo refinery, Serbia’s only oil refinery, at a high level of utilisation.
The Hungarian company pledged that the facility would continue operating with an average annual capacity at least equal to that achieved during the four years preceding the introduction of US sanctions. The refinery is regarded as a strategic asset for Serbia, making the guarantee a key element in securing government support for the deal.
Sanctions forced a rapid solution
The ownership issue became increasingly urgent after the United States imposed sanctions on NIS due to its links to Russian energy giant Gazprom. The sanctions were announced in January 2025, although their full implementation was repeatedly postponed before eventually taking effect in October.
MOL first entered negotiations to acquire the Russian stake in January this year, but talks encountered delays during the spring. The company was granted several extensions by US authorities, with the latest deadline for reaching an agreement approaching rapidly.
The current operating licence allowing NIS to continue its activities is valid until 16 June, increasing pressure on all parties to finalise the transaction.
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Further talks continue as MOL explores additional partnerships
MOL confirmed on Thursday that negotiations with the Serbian government had been successfully concluded. However, discussions with the seller and relevant authorities remain ongoing before the transaction can be formally completed.
At the same time, the Hungarian oil group is reportedly holding discussions with the Abu Dhabi National Oil Company (ADNOC) regarding a possible minority investment in NIS. Such a move could further diversify the company’s ownership structure and potentially ease concerns surrounding the transition away from Russian control.
If approved, the acquisition would represent one of the most significant energy-sector transactions in Central and Southeast Europe in recent years, strengthening MOL’s regional position while helping Serbia navigate the challenges created by international sanctions on Russian energy interests.
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