Djedovic Handanovic: NIS must remain dominant oil company on Serbian market

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic said on Sunday Serbia was very clear and exclusive in its stance that NIS must remain the dominant oil company on the Serbian market.

Commenting on talks with Hungary's MOL about its acquisition of a Russian-majority stake in NIS, Djedovic Handanovic said several rounds of discussions had been held last week and that the shareholders had exchanged draft agreements.

"We have brought our positions closer to find compromise, and I think we will succeed in getting to a satisfactory outcome," she told the RTS.

The minister noted that Serbia insisted on the Pancevo oil refinery continuing to operate on the highest possible scale and on the Serbian market being supplied primarily through domestic processing, and not through imports.

"We have a refinery that is in very good condition. A capital overhaul was carried out in 2024 and the conditions are in place for us to be stable through NIS," Djedovic Handanovic noted.

She said building a new Serbia-Hungary oil pipeline would secure another crude supply route for Serbia.

She added that the project had made good progress and that a large number of permits had already been obtained, as well as that a contract was expected to be signed with a contractor.

"We expect the (construction) works to begin immediately after the summer, and that the project will be completed by 2028," the minister said.

MOL Group announced on Friday it had obtained from the US Office of Foreign Assets Control (OFAC) an official licence until June 6 to continue negotiations on the acquisition, and added that certain terms of a deal were due to be agreed in the coming weeks.

Since October 9, 2025, NIS has been under US sanctions due to its Russian-majority ownership.

The previous OFAC licence for the talks expired on Friday, May 22.