Photo: Dario Konstantinović / Ministry of Mining and Energy
Minister of Mining and Energy Dubravka Đedović Handanović said she expects an obligatory agreement for the purchase of shares of Serbian oil refiner and fuel retailer NIS to be signed by the end of the week. The Russian owners are in discussions with MOL and some other potential buyers, she added. According to Minister of Foreign Affairs and Trade of Hungary Péter Szijjártó, the first significant step toward a deal can be expected in the coming days.
The operator of the only oil refinery in Serbia and the country’s biggest fuel station chain is about to restart the facility in Pančevo as the United States has given it a reprieve from sanctions. However, the license lasts only through January 23. If it is not extended, NIS, also known as Naftna industrija Srbije, can only process what it will have managed to import since the resumption of the flow via Croatia, through the JANAF pipeline.
MOL, indirectly controlled by Hungary, has launched talks about an acquisition of the majority stake in the company from Gazprom Neft and another subsidiary of Russian state-owned Gazprom. Minister of Mining and Energy of Serbia Dubravka Đedović Handanović said today that the owners are also in discussions with some other possible buyers.
Đedović Handanović hinted at a link between Serbia’s aspiration to buy another 5% of NIS and the upcoming bilateral agreement with Hungary
After a meeting in Belgrade with Hungarian Minister of Foreign Affairs and Trade of Hungary Péter Szijjártó, she expressed confidence that an obligatory agreement would be signed by the end of the week on a share purchase.
Đedović Handanović reiterated that Serbia is striving to buy an additional 5% of NIS. Importantly, government officials have acknowledged that they weren’t involved in the current negotiations. The Serbian minister explained that a bilateral agreement is planned with Hungary. It is significant for the overall transaction but also for future strategic projects and NIS’s operations, she stressed.
Serbia currently holds 29.9% of NIS.
MOL wouldn’t close Pančevo refinery
Szijjártó said, as quoted by the Serbian ministry, that the first significant step toward a deal can be expected in the coming days. He pointed out that his government is strongly supporting MOL’s intention to purchase shares in NIS.
The refineries in Bratislava in Slovakia, in Százhalombatta in Hungary, and in Pančevo in Serbia are key for the long-term stability of supply of oil and derivatives in Central Europe, in Szijjártó’s view. He said it was fake news that MOL would close the refinery, underscoring that it recognizes the asset’s strategic importance.
The Hungarian company has increased deliveries to Serbia by 2.5 times, becoming its biggest importer of fuel, and all its storage facilities are full, Szijjártó asserted.
Đedović Handanović highlighted the two countries’ oil pipeline interconnection project, saying the works are expected to begin in mid-2026. The tender for the Serbian part was recently launched. The goal is to complete construction in 18 months, the minister added. Hungary and Serbia are also planning another electricity interconnection.
Fuel to arrive to Serbia through pipelines
In addition, the Ministry of Mining and Energy said last week that Serbia is considering the construction of fuel pipelines that would connect it with Hungary and Romania.
Equally notable, Greece-based HELLENiQ Energy repurposed the oil pipeline to its former refinery in North Macedonia and has just put it into operation, after a 13-year break, as a diesel supply line. The company reportedly also aims to deliver the fuel to Kosovo*, southern Serbia and even Bulgaria. The pipeline’s capacity is 2.5 million tons per year.
* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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