Serbia uncertain over deadline in deal for Russian stake in NIS oil firm

Serbian President Aleksandar Vucic said he was not optimistic that an agreement will be reached over Hungarian oil company MOL’s bid to take a majority stake in NIS, the operator of Serbia’s sole refinery, before a May 22 deadline.

The planned divestment involves the transfer of Russian ownership in NIS by Gazprom Neft and Gazprom, which together hold a 56% majority stake. The move follows pressure from the United States, which has demanded the sale of Russian-owned shares due to sanctions imposed over Moscow’s war in Ukraine, Reuters reports. 

Washington has set a May 22 deadline for the transaction to be completed, requiring Serbian government approval due to its 29.9% stake in NIS.

Speaking to Serbia’s RTS television on May 21, Vucic said it was unlikely that a deal between MOL and the Russian companies would be finalized in time.

"We have had countless meetings with people from MOL. I hope we will end successfully, but I am not optimistic," he said.

However, he added that Washington was expected to grant additional time for the involved parties to complete the transaction.

The United States imposed sanctions on NIS in October as part of broader measures targeting Russia’s energy sector following the invasion of Ukraine. The company has since received several waivers from the U.S. Treasury’s Office of Foreign Assets Control (OFAC).

By Sabina Mammadli