Serbia and MOL reach compromise on NIS energy deal, boosting Serbian influence

Serbia and the Hungarian energy company MOL have successfully resolved outstanding issues concerning their shareholder agreement for NIS, the national oil company. Minister of Energy Dubravka Đedović Handanović announced the compromise, emphasizing its beneficial implications for Serbia.

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Today we have successfully closed all open issues with the Hungarian MOL and reached a compromise regarding the shareholder agreement between the Republic of Serbia and MOL.

The core of the agreement involves a potential increase in Serbia's stake in NIS. If Russia's Gazprom Neft proceeds with selling its 56.15% share in NIS and the U.S. Office of Foreign Assets Control (OFAC) approves the transaction, Serbia will acquire an additional five percent of NIS shares. This move is expected to grant Serbia greater influence, including the ability to make or block crucial decisions concerning the company's future.

Furthermore, the agreement ensures the continued operation of the Pančevo refinery. MOL has committed to maintaining the refinery's operations at levels consistent with the average annual capacity of the four years preceding U.S. sanctions. This commitment is vital for meeting Serbia's domestic demand for petroleum products and was a key point of negotiation for the Serbian side.

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The Pančevo refinery will continue to operate as before, with at least the same average annual capacities as in the last four years before the introduction of American sanctions, when NIS operated excellently.

Minister Đedović Handanović expressed pride in the outcome, highlighting that Serbian representatives on NIS's Board of Directors will now have enhanced powers, both in making and blocking decisions unfavorable to Serbia. She noted that Serbia has not wielded such influence since NIS was privatized in 2008. The minister concluded by stating that Serbia continues to seek a long-term solution for NIS amidst the U.S. sanctions, emphasizing that the country bears no responsibility for these sanctions.

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Serbian members of the NIS Board of Directors will generally have greater powers than before in making, but also in blocking, decisions that are potentially unfavorable to the Republic of Serbia.