Croatian Prime Minister Andrej Plenkovic has indicated that the proposed acquisition of a majority stake in Serbian NIS by Hungarian MOL from Russian GazpromNeft could positively influence the operations of the pipeline operator JANAF in the short term. However, he warned that the long-term effects of this transaction remain uncertain, necessitating continuous discussions with MOL to ensure the viability of the Rijeka refinery.
Since February 2025, U.S. sanctions have expanded to include approximately 250 legal entities, notably impacting NIS, which is predominantly owned by GazpromNeft. This has resulted in significant operational challenges for the Pancevo refinery in Serbia, as over 90% of its crude oil is transported via JANAF, arriving at Omisalj before proceeding through the pipeline to Serbia.
Plenkovic noted that Croatia engaged in extensive negotiations with NIS, Serbian authorities, and U.S. representatives to postpone the sanctions’ implementation until early October. Despite these efforts, sanctions took effect, halting the supply of non-Russian crude oil to NIS through JANAF due to its ownership structure.
Serbia had been aware of this risk for years and had been advised to modify NIS’s ownership to avert such consequences. Following a complicated process largely outside Croatia’s purview, GazpromNeft’s decision to sell its stake in NIS to MOL aims to remove NIS from the sanctions regime, potentially allowing non-Russian crude flows through JANAF to resume under existing contracts.
The Prime Minister characterized this development as advantageous in the short term while acknowledging that longer-term implications are still unclear. He also addressed concerns regarding MOL’s expansion in Serbia and its potential effects on the Rijeka refinery, where MOL holds a controlling interest through INA, emphasizing that these issues will require further dialogue.
Plenkovic pointed out Croatia’s limited position as a minority shareholder in INA, which has restricted governmental options during the ongoing energy crisis. Reflecting on previous decisions regarding INA’s shares, he suggested that they might have been approached differently given current circumstances.
He recalled that the Croatian government had commissioned a valuation of INA and submitted an offer for MOL’s stake, which was ultimately declined. In light of recent developments, Plenkovic stressed the need for renewed discussions with MOL and the Hungarian government to secure the future operation of the Rijeka refinery, critical for meeting nearly all of Croatia’s crude oil requirements. He concluded by affirming that there are currently no signs indicating that the refinery’s operations are under threat.
