Massive Hungarian MOL-Russian Gazprom deal may reshape the Central European energy market

An agreement with Hungarian oil and gas company MOL on the purchase of a stake in Serbian peer NIS from Russia’s Gazprom Neft is close, Minister of Foreign Affairs and Trade Péter Szijjártó said at a joint press conference with Serbian Minister of Mining and Energy Dubravka Dedovic in Belgrade on Thursday.

Everybody backs the acquisition

In a statement issued by his ministry, Szijjártó said there was a good chance the first “milestone” in talks with NIS’s majority owners could be reached soon, with MOL and Gazprom Neft sealing the first important agreement “in the coming days”. According to 444.hu, the deal can be closed this weekend.

Szijjártó with Serbian energy minister Dubravka Đedović Handanović in Belgrade today:

He added that the Hungarian government supported MOL’s intentions to acquire the stake in NISZ as it would benefit the security of energy supply in the Central European region.

• Serbia’s president expects deal between Hungary and Russia over oil company

Integrating the operation of MOL’s refineries on the outskirts of Budapest and in Bratislava with the NIS refinery in Pancevo would create an unprecedented positive situation for the region in terms of energy security and energy prices, he said.

Intergovernmental agreement

Szijjártó said MOL’s intent to acquire the stake was of strategic importance and dismissed speculation the company only wanted to expand its markets. He added that the Hungarian government would provide diplomatic backing for the transaction.

Szijjártó said Hungary and Serbia would sign an intergovernmental agreement establishing the foundations for favourable conditions for strategic cooperation in the oil industry and designating cross-border crude pipelines of priority importance. He added that a crude pipeline and a pipeline for oil products could be built connecting the MOL refinery in Hungary with a logistics base in the north of Serbia.

MOL helping Serbia out

Szijjártó acknowledged the mutual benefit of the two countries’ energy partnership, noting that Hungary took delivery of 7.8 billion cubic metres of gas via Serbia in 2025. He added that MOL had more than doubled its crude exports to Serbia as the country faced challenges because of sanctions.

He said MOL’s three fuel depots in Serbia were operating at maximum capacity, while turnover at its petrol stations there was up more than 20pc.

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