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NIS management deal valid only if sale proceeds, says editor
๐Ÿ‡ท๐Ÿ‡ธ Serbia /Economy & Trade

NIS management deal valid only if sale proceeds, says editor

From N1 Serbia · () Serbian

Translated from Serbian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • An agreement between the Serbian government and MOL group on managing NIS can only be valid if a transaction for the sale of NIS occurs, according to business magazine editor Radojka Nikoliฤ‡.
  • Nikoliฤ‡ highlighted that the agreement is conditional on approval from OFAC and the sale of NIS by Gazprom, with many uncertainties surrounding the deal.
  • She noted a lack of clear signals from the Russian side (Gazprom) regarding the NIS sale, while both Serbian and MOL representatives have made occasional statements.

A conditional agreement between the Serbian government and the Hungarian oil company MOL group regarding the management of NIS can only be valid if a transaction for the sale of the company takes place, according to Radojka Nikoliฤ‡, editor of the business magazine.

Nikoliฤ‡ emphasized that the current agreement is essentially an internal understanding between two parties, made without a definitive decision on the sale of NIS. She pointed out several unresolved issues, including whether NIS is actually being sold, if MOL is the buyer, and if the Office of Foreign Assets Control (OFAC) has approved the transaction.

"This type of memorandum, or internal agreement, can only be valid if the transaction occurs and if Hungarian MOL buys NIS," Nikoliฤ‡ stated. She added that the agreement stipulates that all parties will work to make NIS stronger and more profitable, but only if the transaction is approved by OFAC and Gazprom sells the company. "So, there are so many 'ifs,' so many conditions, and so many prior things that must be completed for such an agreement to be respected," she explained.

Nikoliฤ‡ also expressed concern over the lack of clear communication, particularly from the Russian side. "We constantly hear announcements primarily from our side, which keeps the hope alive that something will be agreed upon, but we still have no definitive answer. On the other hand, MOL representatives occasionally react, but less than our side, and on the third side, we have no signals at all from the Russian side, Gazprom, about what is happening," she observed.

Regarding the possibility of OFAC extending a license for another 15 days, Nikoliฤ‡ suggested that even if a transaction were to happen in July, MOL would only then begin a gradual takeover of NIS. She predicted that the entire year would be spent on this process.

Sa druge strane, povremeno reaguju i predstavnici MOL-a, ali manje nego naลกa strana, a sa treฤ‡e strane mi uopลกte nemamo nikakave signale sa ruske strane, Gasproma, ลกta se deลกava

โ€” Radojka Nikoliฤ‡contrasting communication from Serbia, MOL, and Gazprom
DistantNews Editorial

Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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