MOL Hungary, Gazprom Neft Russia, and Gazprom will get an extension of NIS talks

Serbian President Aleksandar Vucic announced on Tuesday that the initial deadline had expired. He said that the talks between Hungary's MOL and Russia’s Gazprom and Gazprom should be extended by 15 days. Last October, the Office of Foreign Assets Control of the U.S. Treasury imposed sanctions against NIS as part of their efforts to target Russia's?energy sector due to?the conflict in Ukraine. They demanded that Russian firms divest their shares in NIS. The U.S. sanctioned also forced NIS to request waivers from OFAC in order to purchase and process crude oil. This would no longer be required once the share sale was completed.

MOL has signed an agreement in January to purchase a combined 51.56% of Gazprom and Gazprom. This is subject to OFAC approval. Washington gave Washington until June 16th to complete the deal.

Vucic, who is currently on a visit to the Georgian capital Tbilisi while on a State Visit, said he was?informed that there would be a 15 day extension. He also expressed his hope that the Russians would accept the agreement.

MOL, Gazprom Neft and NIS could not be reached immediately for a comment. MOL, which owns 29.9% of NIS, and Serbia, which holds a minority stake in the company, signed a formal shareholders' agreement on Tuesday. This is separate from MOL's acquisition talks with Russian companies. The deal with MOL allows the Serbian government to purchase an additional 5% stake in NIS if Gazprom and Gazprom sell their shares and if OFAC approves of the transaction. (Reporting and editing by Barbara Lewis; Additional reporting by Anita Komuves, Budapest)

(source: Reuters)