MOL in talks about possibility of purchasing stake in Serbian NIS

Hungary acknowledged that state-controlled oil and gas company MOL is in discussions aimed at exploring the possibility of acquiring a stake in NIS. Based in neighboring Serbia, the oil refiner and service station chain operator is under sanctions that the United States imposed on its owner, Russian Gazprom Neft.

Gergely Gulyás, chief of staff of Hungarian Prime Minister Viktor Orbán, revealed today that integrated oil and gas company MOL, headquartered in Budapest, is conducting talks about the possibility of taking over an ownership stake in NIS – Naftna industrija Srbije. Speaking at a media briefing, he added that it is in the Serbian company’s interest to end Russian ownership, pointing out that US sanctions are jeopardizing its operations.

NIS, which runs the only refinery in the country and a service station chain, hasn’t received any oil in a month and a half. The facility, located in Pančevo near Belgrade, is about to halt its operations. NIS came under sanctions because it was majority-owned by Gazprom Neft.

Its parent company Gazprom later reduced Gazprom Neft’s stake to 44.5% and switched the remainder to another subsidiary. The US apparently demands a complete Russian exit.

MOL, not Hungarian government, is in discussions concerning NIS

Gulyás clarified that MOL, a public company, is the one in discussions about a potential stake purchase – not the government. Notably, Hungary controls the company indirectly, through several entities.

The government is ready to help neighboring Serbia with regard to a deal with MOL, the official stressed. Gulyás didn’t confirm or deny speculation that his prime minister would travel to Moscow tomorrow to meet with Vladimir Putin.

Orbán visited Serbia and met with President Aleksandar Vučić today. The Hungarian leader, who managed to get an exemption earlier from the US sanctions on Russian oil and gas, said he would engage in negotiations “in the coming days or tomorrow” to secure the actual supply and “not just papers and permits.”

Russian oil and gas will continue to flow to Hungary, so Serbia will be getting it, too, Orbán claimed.

Gulyás: Fuel export boost to Serbia not to disturb domestic supply

According to earlier media reports, Abu Dhabi National Oil Co. (ADNOC) from the United Arab Emirates is among the suitors for NIS.

Serbia has asked the US to suspend sanctions for 50 days. Vučić said the government would take over NIS if a buyer isn’t found.

Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó said yesterday that MOL’s fuel deliveries to Serbia have been doubled and that they would be 2.5 higher in December on an annual scale.

Gulyás denied that the increase in exports to the neighboring country would disturb domestic supply.