Serbia is not satisfied with MOL's proposal for NIS oil company

Belgrade was not happy with the revised proposal made by Hungary's MOL regarding its purchase of a majority share in Serbia's oil company NIS, said the country's energy minister on Wednesday.

The talks between MOL, the majority owner of NIS and Russia's Gazprom and Gazprom (44.9% and 11.3% respectively) are separate.

Serbian energy minister Dubravka Djedovic Handanovic stated that the future operation?of Serbia's one refinery, which is owned by NIS and its coverage of the local market were the major stumbling blocks in the negotiations, without providing further details.

She said that "we?will never compromise the security of supply or the impact?that refinery operations have on the economy and business" in a press release. Djedovic handanovic said last week that Belgrade had also been dissatisfied by MOL's previous proposals.

She said that talks will continue on Thursday, and the government is looking to find a compromise "but not at all costs".

MOL didn't immediately respond to an inquiry for comment.

The?U.S. The?U.S. Treasury's Office of Foreign Assets Control implemented sanctions on NIS in October as part of broader measures targeting Russia's oil sector due to the conflict?in Ukraine. They demanded the divestment of Russian-owned shares in NIS.

MOL signed a deal in January to purchase the combined Gazprom?and Gazprom stakes. Washington gave the Russian companies until May 22 for the sale to be completed.

Serbia wants to also increase its stake in NIS. (Reporting and editing by Aleksandar Vasovic)

(source: Reuters)