Serbian energy authorities are actively negotiating a potential change in ownership of the oil company NIS as part of efforts to lift US-imposed sanctions and ensure fuel stability. The discussions involve the company’s Russian majority shareholders and Hungary’s MOL, which is being considered as a prospective buyer for the Russian stake. This strategic move is crucial for Serbia, as it seeks to stabilize its energy sector amidst ongoing challenges.
Energy Minister Dubravka Đedović has indicated that the negotiations aim to fulfill the conditions set by the United States that would facilitate easing restrictions on NIS. Both NIS and MOL have reached out to the US Office of Foreign Assets Control (OFAC) to clarify the parameters necessary for a successful ownership transition.
The initiative has garnered support from the Hungarian Government, while Serbian officials have committed institutional backing to ensure that NIS can regain full operational stability. This ownership transition is viewed not only as a pathway to lifting sanctions but also as a means to secure a renewed operating license for NIS, which is vital for its continued operations.
Despite the sanctions coming into effect over two months ago, Serbian authorities report that domestic fuel supply remains stable. The country has relied on its state reserves of diesel, gasoline, fuel oil, and aviation kerosene to mitigate any disruptions for consumers. However, officials warn that this reliance on reserves is not a sustainable long-term solution, given Serbia’s limited logistical capacity to import the necessary daily volumes of petroleum products.
The Serbian Government plans to engage in diplomatic and technical efforts intensively to ensure NIS can continue its operations, even if the ownership negotiations take longer than anticipated. The Ministry of Energy has emphasized that future actions will largely depend on decisions made by OFAC, which is expected to first address the issuance of a new operating license before assessing compliance with US requirements during the negotiations.
