Djedovic Handanovic: Talks on NIS sale have not collapsed

BELGRADE - Serbian caretaker Minister of Mining and Energy Dubravka Djedovic Handanovic told Tanjug on Thursday talks between Hungary's MOL and the Russian energy company Gazprom about an acquisition of a Russian majority stake in the Serbian oil company NIS by MOL had not collapsed, as also confirmed by a decision by the US Office of Foreign Assets Control (OFAC) to allow the negotiations to continue until October 30.

NIS is under US sanctions due to the Russian majority ownership.

Djedovic Handanovic also dismissed speculation in some media outlets that a Serbia-Hungary oil pipeline would be built in order to shut down the Pancevo oil refinery and import finished oil derivative products to Serbia.

The goal is to ensure that Serbia does not depend on a single oil supply route, the Croatian JANAF pipeline, she noted.

Dragan Djilas, leader of the opposition Freedom and Justice Party, said earlier in the day the "collapse of MOL-Gazprom Neft talks is an opportunity for Serbia to acquire NIS."

"I do not know who informed Mr Djilas that the MOL-Gazprom Neft talks have collapsed, as there is no such information. On the contrary, the US OFAC has extended its permission to MOL to continue the talks on a purchase of a majority stake in NIS. For that reason - especially when it comes to a strategic company for our country and for the citizens' energy security - it would be responsible not to publicise unverified information whose sole purpose is political gains," Djedovic Handanovic said.

On Wednesday, the OFAC extended an operating licence for NIS, as well as MOL's licence for the talks with Gazprom Neft, until October 30.

A licence for JANAF's crude oil transport to NIS was also extended until the same date.

The previous licences expired on September 30.