Serbia’s government has reiterated its dedication to maintaining control over the NIS (Naftna Industrija Srbije), a crucial component of its domestic fuel sector. This commitment comes as negotiations progress regarding the potential acquisition of the Russian ownership stake by Hungary’s MOL Group. Mining and Energy Minister Dubravka Đedović reported that discussions have intensified recently, with multiple rounds of negotiations and exchanges of draft shareholder agreements taking place.
Minister Đedović highlighted that MOL’s focus is on achieving greater operational flexibility within its corporate framework. However, she emphasized that Serbia’s priority remains ensuring that NIS continues to be a dominant force in the national energy landscape. This strategic positioning is critical as Serbia seeks to bolster its energy independence and market stability.
A significant aspect of Serbia’s energy strategy involves maximizing the utilization of the Pančevo refinery. The government aims to prioritize domestic fuel processing, thereby reducing reliance on imported petroleum products. The refinery underwent modernization during a comprehensive overhaul completed in 2024, which is expected to enhance long-term market stability.
In addition to refinery operations, Serbia is advancing several infrastructure projects deemed vital for enhancing supply security. Among these initiatives is the planned Serbia–Hungary oil pipeline, which is viewed as a strategic diversification effort aimed at providing an alternative route for crude oil deliveries. Minister Đedović indicated that permitting procedures for this pipeline are progressing well, with an agreement with contractors anticipated soon. Construction is set to commence post-summer, with completion targeted for 2028.
This new pipeline will significantly reduce Serbia’s dependency on crude oil imports currently reliant on transportation through Croatia and the JANAF system. It will also strengthen connections with Central and Eastern European energy corridors via Hungary, enhancing regional integration.
Meanwhile, MOL Group has received approval from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) to continue negotiations regarding the acquisition of the Russian stake in NIS until June 6. The company noted that several conditions remain to be finalized in the coming weeks, following a previous deadline for reaching an agreement with Gazprom Neft, which was set for May 22.
