Mali: I expect Hungary's MOL to officially acquire NIS by mid-March

BELGRADE - Serbian First Deputy PM and Finance Minister Sinisa Mali said on Wednesday he expected Hungary's MOL to officially acquire the Serbian oil company NIS from Russia's Gazprom neft by mid-March.

"What matters is that, on Monday, we reached an agreement with the Hungarian side and the Arabs (UAE-based ADNOC) regarding our rights and liabilities once they take control of the company. The Hungarians said an agreement would be signed by the deadline set by the OFAC (US Office for Foreign Assets Control), that is, by March 24. I expect that to happen a bit sooner, say, in mid-March or by mid-March," Mali told reporters in Belgrade.

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

Mali said most of the work on finding a solution for NIS had already been done.

"In my opinion, most of the work is already finished, considering the term sheet submitted and signed by the Hungarians and the Russians, which contains the fundamental provisions of the agreement. That is good news because it lowers the uncertainty regarding fuel supplies," Mali said.

He said Serbia was embarking on a more stable and more peaceful period.

"We can turn to our investments and sign agreements with more investors, introduce new technologies and create new jobs," he said.

On January 19, MOL and Gazprom neft agreed the fundamental provisions of a future sales and purchase agreement on NIS, to be reviewed by the OFAC.

In negotiations, Serbia has succeeded in increasing its stake in NIS by five per cent.