Serbia, Hungary aim to finalize NIS ownership deal by week's end

Serbia and Hungary expect to reach an agreement by the end of the week on the purchase by Hungary's MOL of the Russian shareholders' stake in Serbia's energy company NIS, Serbian Energy Minister Dubravka Dedovic Handanovic said following a meeting with Hungarian Foreign Minister Peter Szijjarto, Report informs via Serbian media.

She said talks are underway between NIS's Russian shareholders, Hungary's MOL, and several other potential partners.

"The goal is to conclude these negotiations by the end of the week in order to sign a binding agreement on the transfer of ownership, that is, the exit of the Russian shareholders from NIS and the buyout of their stake by new owners," Djedovic Handanovic said.

She added that once the deal is finalized, a request will be sent to the US administration to extend the relevant license. In this context, the sides also discussed a potential intergovernmental agreement they intend to conclude.

Szijjarto, for his part, said that MOL aims to acquire a controlling stake in NIS.

As previously reported, on January 10 the United States imposed sanctions on two Russian oil companies, Gazprom Neft and Surgutneftegaz, as well as their subsidiaries. The Serbian subsidiary of Gazprom Neft, NIS, was also added to the SDN List. Serbian President Aleksandar Vucic earlier said that the US is demanding the complete withdrawal of Russian capital from NIS within 45 days. He also recalled that the Serbian government sold a controlling stake in NIS to Gazprom Neft in 2008, noting that the company has since generated significant budget revenues and supported the development of numerous projects in Serbia.