Djedović Handanović: NIS Submits Request to OFAC for Extension of Operating License

Speaking to the national broadcaster RTS, the Minister stated that, following the completion of the transaction, Serbia could increase its ownership stake in NIS by five percent, and that partners from the United Arab Emirates (UAE) are expected to hold a minority stake within the 56.15 percent that MOL intends to acquire.

Elaborating on the current status of efforts to resolve the NIS issue, Djedović Handanović said that a share purchase agreement has not yet been concluded, but that the key terms of the future agreements have been aligned. “There is still a significant amount of work to be done for the overall agreement to be finalized. However, what is important is that the Russian majority owner, Gazprom Neft, and Hungary’s MOL have agreed on the fundamental principles, and that NIS has submitted a request to OFAC,” Djedović Handanović told RTS.

She added that the Government of Serbia will support the talks between the two parties and will formally inform OFAC of its support for the transaction, primarily because it is believed that the transaction would lead to a long-term, sustainable solution by creating the conditions for the lifting of sanctions.

However, she noted that it remains to be seen whether the U.S. administration will approve the transaction. “It is important that this preliminary agreement has been reached, as this was a requirement of the U.S. administration, and we are now awaiting a decision from Washington by the end of this week,” she said.

Speaking about the role of ADNOC of the United Arab Emirates in the arrangement related to NIS, Djedović Handanović said that the UAE is a friend of Serbia, owing to the excellent relations between President Aleksandar Vučić and the leadership of that country, and noted that ADNOC is the world’s twelfth-largest crude oil producer and a member of OPEC. She emphasized that Serbia can only benefit from ADNOC’s entry into the domestic market and its presence in NIS.

The Minister also stated that, in the negotiations on the change in ownership, one of Serbia’s objectives was to improve its position compared to that negotiated for NIS in 2008.

“I believe that we have succeeded in doing so, at least at this preliminary stage, as we are agreeing on the preliminary and fundamental principles of the future agreement. Serbia has signed a memorandum of understanding with MOL providing for an increase of Serbia’s ownership stake by five percent. Why is this important? Because Serbia will gain an additional opportunity to exercise control within the Shareholders’ Assembly, primarily by being able to block certain decisions if it deems this necessary and if the other shareholders vote in favour of decisions with which Serbia does not agree,” Djedović Handanović said.

She stated that it was important for Serbia that MOL commit to maintaining the level of refinery operations in line with the average levels of previous years, and above all to preserving the historical market share that existed in the past.

“We know that NIS has been a dominant market participant and, in that sense, as the market continues to expand and grow, refinery operations will also have to increase, because they have committed to maintaining that level of market share through refinery operations. I believe that, in difficult negotiations with a future partner, we have managed to improve our position and better protect the interests of our citizens than was the case in 2008,” Đedović said.

Asked about the announced signing of an intergovernmental agreement with Hungary, the Minister said that the agreement is important primarily because MOL is a Hungarian company, and that the intergovernmental agreement should strengthen the foundations on which future cooperation between Serbia and Hungary will be built. She pointed out that the future intergovernmental agreement will cover certain provisions of the memorandum of understanding agreed with MOL, as well as the oil pipeline project with Hungary, which is of strategic importance for Serbia.

Djedović Handanović emphasized that despite sanctions on NIS, there have been no fuel shortages. “The market has been fully supplied thanks to the state’s careful preparation and the level of reserves built up over the past three years, and we also had good cooperation with all oil companies,” the Minister said.

She added that petroleum product stocks remain at a high level. “Everything released to the market from compulsory or strategic stocks has already begun to be replenished so that the supplied products are once again available,” the Minister said. She noted that the stocks currently include approximately 182,000 tons of Eurodiesel, about 25,000 tons of gasoline, around 55,000 tons of fuel oil, and roughly 2,600 tons of kerosene.

Speaking about priority projects in the energy sector for 2026, the Minister highlighted the oil pipeline from the Hungarian border to Novi Sad, the pumped-storage hydropower plant Bistrica, and the construction of a one-gigawatt solar power plant with battery storage.

Djedović noted that the tender for the construction of the Serbia–Hungary oil pipeline has been announced, with the deadline for applications set for early February.

“This is one of the strategic and important projects that will ensure long-term, improved, and stronger energy security for us,” Djedović Handanović said. She added that preparatory works for the infrastructure of the pumped-storage hydropower plant Bistrica are also expected to begin this year.

“Another very important project is the construction of approximately 1,000 megawatts of solar power plants. We are finalizing commercial negotiations as well as financing arrangements, and I expect this project to also enter implementation during this year,” the Minister said.