Gazprom Neft and MOL reach provisional agreement on the sale of NIS shares by Russia

Serbian Energy Minister Dubravka Djedovic Handanovic announced on Monday that Russia's Gazprom has reached an?agreement? to sell its majority share in Serbian refiner NIS, to Hungary's MOL.

She told Video Plus that the Office of Foreign Assets Control of the U.S. Treasury Department, which imposed sanctions on NIS due to its Russian ownership, would need to approve the deal.

NIS?supplies approximately 80% of Serbian fuels, including wholesale gasoline and diesel. The company also controls 50% of the retail market.

She said that partners from the United Arab Emirates will be expected to be a part of the sale agreement in the future as negotiations continue towards a deadline on March 24.

"Serbia has succeeded in improving its position .... and increasing its stake in NIS for the future by 5%. This will give it more voting rights at the shareholders' assembly," Djedovic handanovic said.

MOL MAINTAINS OUTPUT IN SERBIA’S SOLE RIFFINERY

She stated that MOL had to maintain the Serbian sole oil refinery Pancevo operated by NIS at its previous output levels and to even increase production if necessary.

OFAC imposed sanctions on NIS in October as part of wider measures targeting Russia's Energy Sector over the War in Ukraine. This forced the refinery to?go offline and raised domestic supply concerns.

OFAC granted NIS a "sanctions reprieve" until January 23, 2019.

Gazprom, a Russian oil company sanctioned by the United Nations, holds a 44.9% stake in NIS. This is essentially 80% of NIS. Serbian government holds 29.9% of the company, while small shareholders and employees hold the rest. (Reporting and writing by Aleksandar Vaovic; Additional reporting from Daria SitoSucic; Writing and editing by Ivana Skularac, Joe Bavier, Bernadette Baum).

(source: Reuters)