Serbia to submit final NIS proposal to MOL as talks near deadline

Serbia will submit its final position to Hungary’s MOL Group on the potential takeover of a majority stake in Naftna Industrija Srbije (NIS) on May 15, with the Hungarian firm expected to respond early next week, Energy Minister Dubravka Dedovic Handanovic said.

MOL’s board is expected to decide on the proposal on May 18, after several days of intensive talks that have narrowed differences but left key issues unresolved, the minister told news agency Tanjug.

“We agreed on certain issues, but a few important ones remain open, primarily the future operation of the Pancevo refinery and how to ensure optimal supply to the domestic market,” Dedovic Handanovic said.

The refinery, which supplies the bulk of Serbia’s fuel demand, remains a sticking point in negotiations, with Belgrade insisting on guarantees over processing levels and security of domestic supply.

MOL has been in exclusive talks to acquire a 56.15% stake in NIS from Russia’s Gazprom Neft and another Gazprom-linked entity, Intelligence, which are under pressure to divest following US sanctions imposed in 2025.

Under a licence issued by the US Treasury’s Office of Foreign Assets Control, the transaction must be completed by May 22, leaving limited time to reach a final agreement.

The negotiations have stalled in recent weeks, with Serbia rejecting a revised offer from MOL on May 13, saying it failed to guarantee sufficient domestic market coverage from the Pancevo refinery.

As talks drag on, alternative bidders have begun to emerge.

Serbian tycoon Bogoljub Karic said a consortium dubbed Tesla Energy was ready to submit an “irresistible” offer for NIS, aiming to keep ownership and profits within Serbia.

His move follows a reported €2bn bid from businessman Ranko Mimovic, who has claimed his proposal has backing from Russian stakeholders and positive signals from US authorities.

However, analysts have questioned the credibility of such bids, noting that financial transparency, regulatory compliance and operational experience are critical in a transaction involving a strategically important, sanctioned energy asset.

Atila Holoda, a former MOL executive, said on May 15 that the key issue is not only price but the ability to ensure “stable, politically acceptable and professional management” of the company.

President Aleksandar Vucic welcomed the emergence of new bidders but signalled that negotiations with MOL remain central, saying a deal could be concluded if agreement is reached on refinery operations.

The outcome ultimately hinges on NIS' Russian owners and their willingness to sell, with Serbia holding only 29% of shares in the company.