Serbian government signs shareholder agreement with Hungary’s MOL

The Serbian government signed a shareholder agreement with Hungary’s MOL concerning the future management of Naftna Industrija Srbije (NIS), which would, provided that MOL successfully acquires Gazprom Neft’s stake in NIS, allow the Hungarian company to become the majority owner of the oil company and ensure its further development and Serbia’s supply of petroleum products.

The agreement comes on the day when a deadline set by the U.S. financial authorities (OFAC) expires for the Hungarian and Russian sides to reach an agreement on the takeover of 56.1% of the Russian-owned shares in NIS, which is subject to U.S. sanctions on Russia’s energy sector introduced in early 2025, CE Report quotes FENA.

Alongside the signing of the purchase agreement, additional regulatory approvals are required to complete the transaction, while MOL Group continues negotiations with Gazprom Neft on acquiring its 56.15% stake in NIS, the Serbian Ministry responsible said, as reported by Hina.

“The signing of the shareholders’ agreement today defines the regulation of future relations between the state and Hungarian MOL, if they purchase NIS from Gazprom Neft,” the Serbian Ministry of Mining and Energy said in a statement.

The agreement will enter into force only if MOL and Gazprom Neft reach a purchase agreement and if it is approved by the U.S. Office of Foreign Assets Control (OFAC), Serbian Minister of Mining and Energy Dubravka Đedović Handanović said.

Additional shares

According to the agreement approved by the Serbian government, Serbia will purchase an additional 5% of shares in NIS, while the refinery will operate for at least the next 10 years at the same capacity level as in the four years prior to the introduction of U.S. sanctions, she added.

The agreement allows the future majority shareholder to take responsibility for professional management, stable operations, and investments that create value in NIS.

Upon successful completion of the transaction, MOL will ensure supply to the Serbian market and the operation of the Pančevo refinery, while further strengthening the network and logistics connections of MOL Group’s energy facilities, the statement said.

MOL Group President and CEO Zsolt Hernádi said that, as a result of constructive negotiations with the Serbian government, an agreement on the management of NIS had been reached.

Upon successful completion of the transaction, Hernádi added, MOL would, as majority shareholder, be able to manage NIS efficiently and on a professional basis.

“We can begin joint work with clearly defined responsibilities and decision-making processes and put an end to this long period of uncertainty,” he said.

He also stated that MOL would do everything to make NIS “stronger and more profitable.”

According to the Serbian ministry, Hernádi noted that the agreement between the Serbian government and MOL does not yet mark the end of the sale process, as an agreement with Gazprom Neft still needs to be reached, along with approval from the United States.

“I am optimistic because this would allow us to further strengthen supply security for the entire region and achieve a higher level of cooperation among energy companies in Central and Eastern Europe,” Hernádi said.

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