Djedovic Handanovic: NIS has submitted request to OFAC to extend its operating licence

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic said on Tuesday the Serbian oil company NIS had submitted a request to the US Office of Foreign Assets Control (OFAC) to extend its operating licence for the duration of talks aimed at completing an agreed transaction between Gazprom, the company's majority owner, and the Hungarian oil firm MOL.

Once the transaction has been completed, Serbia could increase its stake in NIS by five per cent, while an UAE-based partner is expected to become a minority shareholder in a 56.15 pct stake to be acquired by MOL, the minister told the RTS.

Asked about progress in the talks, Djedovic Handanovic said a sales and purchase agreement had still not been signed and that, for now, a heads of agreement had been agreed.

"There is still much work to be done to agree the entire deal. However, what is important that the Russian majority owner, Gazprom neft, and MOL have agreed on the fundamental principles and that NIS has submitted a request to OFAC," Djedovic Handanovic said.

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