Djedović Handanović and Szijjártó: Aim to Conclude NIS Negotiations by the End of the Week

Minister of Mining and Energy Dubravka Djedović Handanović said today, following a meeting with Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó, that talks are currently underway between the Russian owners of Naftna industrija Srbije (NIS), MOL, and several other potential buyers, and that she expects a binding agreement on the purchase of NIS shares to be signed by the end of the week.

The Minister added that once the owners reach an agreement with MOL and other potential buyers on all key aspects of the transaction, a request will also be submitted to the U.S. administration for an extension of the license. “The Hungarian government has so far always supported us in our requests for the issuance of the operating license, which has been granted nine times to date. I believe that both the Serbian and Hungarian governments, as well as all those involved in the process, will use all diplomatic means to obtain the first extension for NIS to continue operating after January 23 and to enable the successful completion of the transaction,” Djedović Handanović said.

One of the main topics of today’s meeting was the conclusion of an intergovernmental agreement between Serbia and Hungary, as well as the definition of the basic principles and foundations of this agreement. “We will begin work on this agreement very soon, as it is important for the overall transaction, as well as for agreements on future strategic projects and the future operations of NIS. We are aiming to increase Serbia’s stake in NIS by about five percent, and today we also received confirmation that there is no intention to shut down the refinery, which is operating very successfully and has the potential to operate at an even higher and more efficient level. The agreement is important in order to remain reliable partners in the future, to ensure predictability regarding future investments, and to provide secure supply for our citizens and the economy,” Djedović Handanović said.

She emphasized that Serbia has managed to maintain security of oil supply over the past nearly 100 days, during which there was no inflow of crude oil into Serbia via the Adriatic Oil Pipeline. “This was achieved thanks to the state’s good level of preparedness, as well as cooperation with companies, including MOL, which increased supplies to our market. With crude oil deliveries to NIS via JANAF resuming as of yesterday, we expect the Pančevo refinery to resume operations by the end of the week,” said Djedović Handanović.