Russia confirms talks over selling majority stake in Serbia's NIS oil company

Kremlin spokesperson Dmitry Peskov has confirmed that Russia is considering the sale of a majority ownership stake in Serbia's state-controlled oil company, Naftna Industrija Srbije (NIS).

Peskov stated that discussions regarding the potential sale have taken place, including with Serbian officials. However, he emphasized that the specific details of these commercial contacts are confidential and should not be publicly disclosed.

NIS is described as one of the largest vertically integrated energy companies in Southeast Europe, involved in the exploration, production, refining, and marketing of oil and gas. The company employs approximately 14,000 people and contributes significantly to Serbia's budget, accounting for nine percent annually. NIS operates over 400 gas stations, a refinery in Pančevo, a production facility in Novi Sad, and the Petrohemija plant, along with the Pančevo thermal power plant in partnership with Gazprom energoholding.

Adding to the complexity of the potential transaction, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has extended the license for Hungary's MOL company to negotiate the purchase of the Russian stake in NIS. This extension, along with NIS's operational license, is valid until July 1.

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There have been contacts, including with the Serbs, with Serbian colleagues, but, of course, these are commercial contacts, the details of which should not be published.