The Russian and Hungarian owners signed the contract for the sale of NIS

Serbian Finance Minister Siniša Mali confirmed on Tuesday that Russian owners have signed a contract to sell their majority stake in Naftna Industrija Srbije (NIS) to Hungary’s MOL Group. Speaking to Bloomberg Adria, Mali stated that an agreement was reached between the Russian side, which holds the majority share, and the Hungarian oil company. He added that the Serbian government has also concluded a shareholders’ agreement with the Hungarian party. According to Mali, the transaction requires final approval from competition protection authorities in Serbia and Bosnia and Herzegovina before the formal change of ownership can occur. He expressed expectation that the deal will be completed soon. The current ownership structure of NIS includes a 44.85 percent stake held by Gazprom Neft and an 11.3 percent stake held by Intelligence, a company linked to Gazprom. Together, these entities control approximately 56.15 percent of the company. The Serbian state currently holds a 29.9 percent stake, while remaining shares belong to small shareholders and employees. Under the new arrangement, Serbia aims to increase its ownership from roughly 30 percent to 35 percent. This move is intended to push the state’s holding above the one-third threshold. A written agreement regarding this increase was established with the Hungarian side. Reports indicate that more than 56 percent of the previous Russian holdings will transfer to MOL. NIS has been subject to American sanctions due to its majority Russian ownership since early last year. The Office of Foreign Assets Control (OFAC) imposed these restrictions at the beginning of the previous calendar year. Following the imposition of sanctions, NIS obtained a temporary license for business operations late last year. OFAC has extended this license multiple times after its initial expiration. The recent announcement comes just days before the current OFAC license expires. This license allows NIS to operate smoothly and supply oil to refineries in Serbia. Both American and British sanctions have affected the company since January of last year. Analysts suggest that once MOL formally takes over and Serbia increases its stake, these sanctions should be lifted. Former Serbian President Aleksandar Vučić, who is now a candidate for prime minister, previously noted that the Russian stake is valued at around one billion euros. However, analysts estimated the price could rise to 1.4 billion euros. The official amount of the transaction has not been disclosed publicly. The specific shareholders’ agreement between Serbia and MOL was signed in mid-June of this year. Mali clarified that negotiations between the Russians and MOL were successfully concluded. He stated that requests for antitrust commission approvals will be submitted shortly. Once these approvals are granted, the formal takeover of shares will be finalized. The Serbian government emphasized that the country benefits from this deal through the increased state ownership percentage. The transition involves complex regulatory steps involving both domestic and international bodies. The involvement of OFAC remains critical, as their authorization dictates whether NIS can continue normal commercial activities without interruption. The shift away from Russian majority control addresses the primary reason for the existing financial restrictions. Stakeholders are awaiting the final administrative clearances from the respective competition agencies in the Balkans. These agencies hold the power to delay or approve the transfer of assets. The process marks a significant step in restructuring the energy sector’s ownership landscape in the region. All parties involved have indicated readiness to proceed immediately upon receiving necessary governmental consents. The focus now shifts to the bureaucratic procedures required to finalize the legal transfer of equity.