Newsletters
Serbia’s energy minister said Monday that the Russian majority owners of the country’s largest oil company, which is under U.S. sanctions, have agreed to sell their stake to Hungarian energy group MOL.
Energy Minister Dubravka Djedovic Handanovic said the pending sale agreement would be forwarded to the U.S. administration for approval as the company seeks to avoid another sanctions-related shutdown of Serbia’s only oil refinery.
“MOL and Gazprom Neft have agreed on the basic provisions of a future sale and purchase agreement,” Djedovic Handanovic said in a video statement.
Washington’s sanctions on the Petroleum Industry of Serbia, known as NIS, imposed as part of a broader crackdown on Russia’s energy sector, forced the shutdown of the country’s only refinery in early December.
The refinery supplies about 80% of Serbia’s fuel.
On Dec. 31, the United States granted NIS a temporary sanctions reprieve, and the refinery resumed fuel production on Sunday.
NIS has received a license from the U.S. Office of Foreign Assets Control allowing it to continue operations until Jan. 23, as well as a separate license permitting negotiations over a potential sale until March 24.
“The agreement itself still needs to be negotiated,” the minister said, adding that Abu Dhabi National Oil Company is also involved in talks to join the potential purchase.
She said Serbia had negotiated an increase in its minority stake in NIS, potentially raising it to about 35%, with the aim of “reach(ing) a level of shares that would grant greater decision-making rights.”
Djedovic Handanovic also said MOL had committed to continuing operations at the Pancevo refinery, easing earlier concerns that the plant could be shut under the deal.
MOL said it had signed a binding agreement with Gazprom Neft to acquire its 56.15% stake in NIS and confirmed it was in talks with Abu Dhabi National Oil Company to join as a minority stakeholder.
“MOL is committed to working together with the Serbian government to further strengthen the security of supply in Serbia and in the region,” company chairman and CEO Zsolt Hernadi said in a statement.
Hungarian Foreign Minister Peter Szijjarto welcomed the agreement, saying the government would continue to support MOL—a key supplier for landlocked Hungary and Slovakia, until the final deal is completed.
Serbia sold a majority stake in NIS to Russia’s Gazprom for 400 million euros ($470 million at current exchange rates) in 2008. Gazprom has since invested several billion euros in the company.
NIS is currently 45% owned by Gazprom Neft, which is under U.S. sanctions.
Its parent company, Gazprom, transferred its 11.3% stake in NIS in September to an associated firm, Intelligence.
Set as preferred source
1 min read
1 min read
