Hungary Poised to Take Majority Stake in Serbia’s NIS as Russia Exits

Hungary is moving closer to acquiring a controlling stake in Serbia’s oil company NIS, as part of efforts to facilitate Russia’s exit from the firm amid U.S. sanctions linked to the war in Ukraine.

Hungarian Foreign Minister Péter Szijjártó said the Hungarian oil and gas group MOL expects to sign a key agreement in the coming days to acquire a majority share in NIS, which is currently majority-owned by Russian entities. His remarks came during a visit to Belgrade and talks with Serbian Energy Minister Dubravka Đedović Handanović.

According to Szijjártó, MOL is seeking a controlling interest in NIS, which operates the Pančevo refinery, the only oil refinery in Serbia. The refinery is considered a strategic asset for the country’s energy security.

NIS suspended refining operations in December due to U.S. sanctions imposed over Russia’s invasion of Ukraine. Limited operations resumed after the company obtained a temporary license from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) on December 31, allowing refining and crude imports until January 23. Serbia has also begun receiving oil shipments via Croatia’s JANAF pipeline.

Russian companies currently hold 56.15% of NIS, with Gazprom Neft owning 44.85% and Gazprom holding 11.3%. The Serbian government owns 29.87%, while the remaining shares are held by minority investors.

Szijjártó said negotiations between MOL and Gazprom Neft are progressing well, adding that any preliminary agreement would be submitted to U.S. authorities for approval ahead of Washington’s March 24 deadline for the divestment of Russian stakes.

Serbian Energy Minister Đedović Handanović said the aim is to conclude talks by the end of this week and sign a binding share-transfer agreement, alongside a request to extend the OFAC license to complete the transaction. She added that the Pančevo refinery is expected to resume operations before the end of the week and that the deal will include investments in oil infrastructure.

Szijjártó reiterated Hungary’s full support for MOL’s bid, stressing that the refinery is of strategic importance and will not be shut down. NIS supplies around 80% of Serbia’s fuel needs, operates 327 fuel stations across the country, and employs roughly 14,000 people.