Serbian PM Macut: MOL's NIS Russian Stake Offer Unacceptable

Djuro Macut (BETAPHOTO/VLADA SRBIJE/SLOBODAN MILJEVIC)

Serbian Prime Minister Djuro Macut said on May 8 that Hungarian oil company MOL's proposal for the purchase of the Russian majority stake in Naftna Industrija Srbije (NIS) is not completely acceptable to the Serbian side, which is why it needs to be changed in the continued negotiations.

Macut told public service broadcaster RTS that the government's priorities are the stability of the Serbian market and the demand that the Pancevo Refinery "must operate," adding that those are red lines for Serbia. "Serbia must be a partner in the talks. I understand MOL's needs, but that cannot be to Serbia's detriment," said the prime minister.

In his words, the energy situation is under control, fuel prices are stable, there are no shortages, but the negotiations on NIS need to wrap up because all the parties involved are running out of patience.

Mining and Energy Minister Dubravka Djedovic Handanovic said on May 7 that the Serbian side is not happy with the proposal it has gotten in the talks with Hungarian MOL on the purchase of the Russian stake in NIS. According to her, the disagreement primarily pertains to the Refinery's future operation and crude oil processing capacity.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) last year imposed sanctions against NIS as part of broader measures targeting the Russian energy sector over the war in Ukraine. The OFAC is asking for the sale of the stake in NIS owned by Gazprom Neft and Gazprom, the Russian majority owners of the company.