The United States Department of the Treasury issued licenses to MOL Group, based in Hungary, to continue negotiations on the purchase of rival oil refiner and distributor NIS, and to the Serbian company to continue operating despite formal sanctions. Both documents expire on December 11.
After reports that the Hungarian MOL Group’s talks with Gazprom on the takeover of its majority stake in Serbian NIS have broken down, and the defeat of the ruling Serbian Progressive Party (SNS) in the general election, all eyes were on the US Office of Foreign Assets Control (OFAC) as the expiration date neared for its licenses related to sanctions against NIS.
Fortunately for the companies and consumers, the body working under the US Department of the Treasury issued a license to MOL Group to continue negotiations. Simultaneously, OFAC handed NIS, also known as Naftna industrija Srbije, a new specific license to continue its operating activities. Both documents are valid through December 11.
The licence that NIS obtained allows it to continue importing and refining crude oil, execute transactions necessary for the security of supply and technical maintenance, and conduct financial settlements.
Both Russia’s state-owned Gazprom and its NIS subsidiary in Serbia are under US sanctions
Both Russia’s state-owned Gazprom and its NIS subsidiary in Serbia are under US sanctions. The ones against NIS have been suspended amid the acquisition negotiations.
MOL Group is in talks to acquire Serbia’s only oil refinery and the largest service station chain. NIS also operates small oil and gas fields, mostly in Serbia’s northeast.
Gazprom holds 56.2% of the company through two firms: Gazprom Neft has 44.9%, and Intelligence controls 11.3%. The Government of Serbia has 29.9%, and minority shareholders account for the rest.
The Student List, which won 53% of votes in the parliamentary elections last week, plans to send delegations to the US and Russia after it establishes the new Government of Serbia. The aim is to discuss the sanctions against NIS and an extension of the Russian natural gas supply contract.
