MOL of Hungary Bids Up to 1 Billion Euros for Serbia's NIS Oil, Says Vucic

• The purchase price is between 900 million and 1 billion euros for the 56% stake; Serbia had offered double but the deal failed to materialize for undisclosed reasons
• U.S. sanctions caused oil supply halts via Croatia and a refinery shutdown, threatening winter fuel shortages; OFAC granted a temporary license until February 20 for crude imports
• NIS operates Serbia's only refinery and supplies 80% of the country's fuel needs, with petrol stations across Serbia, Bosnia, Bulgaria, and Romania

Summary: MOL Hungary Acquires Majority Stake in Serbia's NIS Oil

Key Transaction Details:

Hungary's MOL agreed to acquire a 56.16% stake in Serbia's NIS oil company from Russian owners Gazprom Neft (44.9%) and Gazprom (11.3%) for between €900 million and €1 billion ($1.19 billion), according to Serbian President Aleksandar Vucic. The binding agreement was announced January 19, though the price was not initially disclosed.

Regulatory Context:

The U.S. sanctioned NIS in October 2024 as part of measures targeting Russia's energy sector over the Ukraine war. The Office of Foreign Assets Control (OFAC) must approve the transaction and had set a March 24 divestment deadline for the Russian companies. Following the sale agreement, OFAC granted NIS a temporary license until February 20 to import crude oil.

Strategic Significance:

NIS operates Serbia's only oil refinery in Pancevo and supplies 80% of the country's fuel needs. It also operates petrol stations in Bosnia, Bulgaria, and Romania. U.S. sanctions had forced a halt to oil supplies via Croatia's Janaf pipeline and shut down the refinery, threatening winter fuel shortages in Serbia.

Additional Context:

Serbia's government holds a 29.9% stake in NIS, with remaining shares held by small investors. President Vucic revealed Serbia was willing to pay double the agreed price to the Russian companies but declined to explain why that deal failed, citing national interests.

Market Impact:

The acquisition represents significant consolidation in Southeast European energy markets and removes a major Russian energy asset from the region, aligning with Western sanctions policy while securing Serbia's critical fuel supply infrastructure.