Serbia and MOL reach agreement on NIS: If OFAC approves transaction, state to buy another 5% of shares, and refinery to continue operations

Serbia and MOL have closed all the open issues and reached a compromise when it comes to the shareholder agreement regarding Hungary’s purchase of a majority stake in Naftna industrija Srbije (NIS), which is under US sanctions.

Minister of Mining and Energy Dubravka Djedovic Handanovic wrote on her Instagram account that if Gazpromneft makes an agreement with MOL on the sale of a 56.15% stake in NIS, and the US OFAC approves the transaction, Serbia will buy an additional 5% of shares in NIS.

As the minister stated, this will give Serbia additional rights when it comes to making or blocking important decisions for the country.

– As for the operation of the Refinery in Pancevo, the Hungarian side has committed itself to continuing to operate the Refinery as it has been doing so far, with at least the same average annual capacity as in the last four years before the introduction of US sanctions, when NIS was doing excellent business – the minister stressed, adding that the operation of that facility was one of the key issues for the Serbian side.

She also added that the members of the Serbian side on the NIS Board of Directors will have “generally greater authority than before” in making or blocking decisions that may be unfavorable for Serbia.

– The state of Serbia has not had such influence since 2008, when NIS was privatized. We continue to work dedicatedly to finding a long-term solution for NIS due to the introduction of US sanctions, for which the state of Serbia, its government, or its citizens are not to blame – Djedovic Handanovic wrote.