Serbia’s Minister of Mining and Energy, Dubravka Gjedović Handanović, announced on December 25 that negotiations are underway between Russian shareholders of the Serbian Oil Industry (NIS) and Hungary’s MOL regarding the sale of the company’s shares.
Both NIS and MOL have informed the U.S. Office of Foreign Assets Control (OFAC) about the developments.
“The Hungarian government has supported the talks, and the Serbian government will provide assistance to find a solution for the removal of sanctions and to ensure that NIS can maintain an operational license,” the minister’s office said.
According to Gjedović, the Russian government has expressed support for the removal of its capital from NIS, and Serbia will back these developments. She noted that Serbia currently lacks the logistical capacity to import the required oil products, so negotiations will continue until NIS can resume operations, regardless of how long it takes MOL and Russian shareholders to reach an agreement.
The U.S. authorities extended a license for NIS on December 24, allowing additional time for negotiations on the sale of Russian shares until March 24, 2026. However, this license does not authorize NIS to operate during the talks.
Ownership structure of NIS: Russian state-owned Gazprom Neft holds 56.16%, Serbia owns 29.87%, and other shareholders hold the remainder. The U.S. imposed sanctions on NIS on October 9 to prevent Russia from using energy revenues to finance the war in Ukraine.
The key U.S. condition for lifting sanctions is the removal of Russian ownership. Russia’s President Vladimir Putin stated on December 19 that Gazprom Neft has invested over $3 billion in NIS and that dialogue with Serbia is ongoing to resolve the issue.
