Serbia to submit final proposal on NIS to Hungary's MOL, energy minister says
Serbia's Negotiations with MOL Over NIS Takeover
By Aleksandar Vasovic and Angeliki Koutantou
BELGRADE, May 15 (Reuters) - Serbia will submit its final proposal to MOL on Friday concerning the Hungarian oil company's bid to take over NIS, operator of the Balkan nation's sole refinery, its energy minister said.
Background of the NIS Stake Sale
Russia's Gazprom Neft and Gazprom agreed to sell their 56% majority stake in NIS to MOL in January after the U.S. demanded the divestment of Russian-owned shares due to sanctions over Moscow's war in Ukraine.
Recent Discussions and Outstanding Issues
"We had intensive discussions with representatives of MOL yesterday and the day before yesterday. We agreed on certain issues," Energy Minister Dubravka Djedovic Handanovic was quoted as saying by Serbia's Tanjug news agency.
"There are a few open issues left, and the most important issue for us is the future operation of the refinery."
The government will give its final position on NIS to MOL by the end of the day on Friday, and MOL's board will take a decision on the proposal on Monday, she said.
She did not give further details of what would be included in the proposal.
Deal Timeline and Approval Process
Deadline for Completion
TALKS FOR A DEAL COME DOWN TO THE WIRE
Washington has given the Russian companies and MOL until May 22 to complete the sale, which will require Serbian government consent due to the state's 29.9% stake in NIS.
Serbia's Position and Separate Negotiations
The talks between MOL and the Serbian government, which wants to increase its stake in NIS by 5%, are separate from the Hungarian company's purchase negotiations with Gazprom and Gazprom Neft.
Regulatory Approvals Required
In addition to a green light from the Serbian government, a MOL spokesman said the transaction will also require approval by the U.S. Treasury's Office of Foreign Assets Control (OFAC).
Statements from Key Stakeholders
MOL's Perspective
Speaking at a business forum in Belgrade on Friday, Gyorgy Bacsa, MOL's chief strategic officer, said the company was still speaking with both the Russian shareholders and Serbia and hoped OFAC would allow additional time for talks.
"If there is major progress until (May) 22, the recent practices ... show that a reasonable timeframe will be granted to make it all happen," he said. "We are interested in making a good agreement, my colleagues are in Belgrade."
Serbia's Concerns
Djedovic Handanovic said earlier this week that Serbia was not satisfied with some of MOL's proposals during their talks.
Sanctions and Waivers
Impact of U.S. Sanctions
The U.S. imposed sanctions on NIS in October due to its Russian ownership as part of wider measures targeting Moscow's energy sector.
OFAC Waivers
NIS, however, has secured a series of waivers from OFAC.
Reporting Credits
(Reporting by Angeliki Koutantou in Athens and Aleksandar Vasovic in Belgrade; Editing by Joe Bavier)