Serbian Energy Minister expects talks on NIS with Hungary’s Mol to be completed by May 16

Serbia and MOL Struggle to Finalize NIS Deal Ahead of Sanctions Deadline

Negotiations between Serbia and Hungary's MOL over the purchase of Russia's stake in the Serbian oil company Naftna Industrija Srbije (NIS) are facing significant hurdles, with Belgrade rejecting MOL's latest proposal and expressing pessimism about meeting a looming US sanctions deadline. The talks, which involve complex shareholder agreements and energy security concerns, are further complicated by the involvement of the US Treasury's Office of Foreign Assets Control (OFAC), which has sanctioned NIS over its Russian ownership.

Coverage Comparison

Reporting from TASS, which has closely followed the negotiations, reveals a range of statements from Serbian officials over the past weeks. On May 7, Serbian Mining and Energy Minister Dubravka Djedovic-Handanovic said Belgrade was not satisfied with MOL's proposal after hours of talks, citing "red lines" that Serbia would not cross. However, just two days earlier, on May 5, she had expressed confidence that negotiations would be successfully concluded by May 16, with conditions then created to transmit information to the United States for approval. By May 20, Serbian President Aleksandar Vucic struck a more cautious tone, admitting talks were "not going well" and hoping OFAC would understand Serbia's position as the May 22 deadline approached.

The coverage also includes a statement from Gazprom Neft, the Russian majority shareholder of NIS, which confirmed on May 6 that it was not holding talks with any other companies except MOL and was actively preparing the transaction.

Key Claims

According to multiple TASS reports, the following are the main points of contention and status:

• Serbian Minister Djedovic-Handanovic stated on May 7 that Belgrade rejected MOL's proposal, emphasizing that NIS is a "strategically dominant company" in Serbia's oil sector and that any agreement must protect Serbian citizens and the economy.
• President Vucic said on May 20 that negotiations with MOL were "not going well" and expressed hope that OFAC would not impose sanctions on Serbia "through no fault of its own," as the deadline for a deal approached.
• The US Treasury Department added NIS to its sanctions list in January 2025 due to its Russian ownership, forcing the owners to sell their stakes. The sanctions initially took effect on October 9, 2025, after several delays.
• In January 2025, Gazprom and MOL signed a letter of intent for the sale of a stake in NIS, and Serbia announced it would increase its own stake by 5%.
• Gazprom Neft confirmed it is in active negotiations with MOL only and is not talking to other potential buyers.

Perspectives

The Serbian government appears focused on ensuring that any deal with MOL guarantees the long-term operation of the Pancevo refinery and maintains NIS's dominant position in the domestic market. Minister Djedovic-Handanovic stressed that the agreement must secure fuel output to cover Serbian demand and protect the economy. President Vucic's remarks reflect anxiety about the sanctions deadline and the possibility of Serbia being penalized despite its efforts to comply with US requirements.

MOL's position, as reported, is that it is the sole buyer in talks and is working through corporate and regulatory procedures. The Hungarian company is expected to ensure certain fuel output levels at NIS facilities after the deal, but the specifics remain under negotiation.

The United States, through OFAC, has issued operating licenses for NIS until June 2026, indicating some flexibility, but the pressure to finalize a sale of the Russian stake remains high. The extension of the negotiation deadline to May 22 suggests that US authorities are allowing time for a resolution, though the outcome is uncertain.

As the deadline approaches, the situation remains fluid. While a deal by May 16 was anticipated, the rejection of MOL's proposal and President Vucic's cautious remarks suggest that the path to a final agreement is not yet clear. The next steps will depend on whether MOL can present a revised proposal that satisfies Serbia's "red lines" and whether the US accepts the terms.

This article is based on reporting from TASS, which has provided consistent coverage of the NIS negotiations. All statements and claims are attributed to the officials and companies involved.