MOL receives OFAC approval to continue NIS negotiations until June 16

Hungarian energy company MOL has received formal authorization from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) to extend negotiations for acquiring a majority stake in Serbia's Oil Industry (NIS). The approval allows MOL to continue discussions until June 16, according to an announcement made via the Budapest Stock Exchange.

Following a previous extension granted on May 22, the negotiations have reportedly seen substantial progress. The latest extension is crucial for finalizing the transaction documentation. MOL had initially requested an additional 30-day extension on June 3 to complete the purchase of the Russian-held stake in NIS, after an earlier authorization expired on June 6.

In parallel, NIS itself has obtained a special license from the U.S. Department of the Treasury. This license permits the company to maintain its operational activities, including oil refining, through June 16. The authorization covers the continuation of business operations, existing contracts, and other agreements involving NIS and its subsidiaries, encompassing crude oil processing, imports, technical maintenance, and financial settlements.

The ongoing negotiations center on MOL's planned acquisition of a 56.16% stake in NIS currently held by Russia's Gazprom Neft. NIS remains subject to U.S. sanctions imposed in October due to its Russian ownership ties following the invasion of Ukraine, which prompted Washington's call for the divestment of Russian assets. Serbia holds a 29.9% stake in NIS, with the remaining shares owned by minority shareholders.