In a significant development for Central European energy markets, Hungary’s MOL Group has announced a preliminary agreement to purchase a controlling 56.15% stake in Serbia’s primary oil supplier, Naftna Industrija Srbije (NIS), currently owned by Russia’s Gazprom Neft. The transaction, disclosed on Monday, requires explicit approval from the U.S. Office of Foreign Assets Control (OFAC) due to existing American sanctions against the Russian-owned company.
The acquisition would substantially expand MOL Group’s regional footprint, granting control over Serbia’s sole oil refinery and nearly its entire petroleum market. Company Chairman and CEO Zsolt Hernadi emphasized the strategic importance, stating, “As a reliable regional energy provider, we would like to contribute to the development of Central and Southeastern Europe.”
Concurrently, MOL is negotiating with Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates regarding potential minority shareholder participation. Serbian Energy Minister Dubravka Djedovic Handanovic confirmed the arrangement would increase Serbia’s stake in NIS by 5%, elevating its ownership from 29.87% to 34.87%.
The proposed deal occurs against a complex geopolitical backdrop. Washington imposed sanctions on NIS in 2022 as part of broader measures targeting Russia’s energy sector, with these restrictions taking effect last October. OFAC has granted NIS a license to negotiate the sale until March 24, with the parties aiming to finalize the purchase agreement by March 31.
Serbia’s position remains diplomatically delicate as the nation pursues European Union membership while maintaining strong ties with Moscow and refusing to implement Western sanctions against Russia following its invasion of Ukraine. Serbia originally sold the majority stake in NIS to Russia in 2008.









