Serbia will present its final proposal regarding NIS to Hungary's MOL.

Serbia will present its final offer to MOL on Friday regarding the Hungarian oil company's attempt to acquire NIS, the operator of Serbia's only refinery, according to the energy minister.

In January, Russia's Gazprom Neft and Gazprom decided to sell their 56% majority stake in NIS to MOL after the U.S. mandated the sale of Russian-owned shares due to sanctions linked to the conflict in Ukraine.

Energy Minister Dubravka Djedovic Handanovic stated that there have been intensive discussions with MOL representatives in the past few days, resulting in some agreements. She highlighted that a few issues remain, with the most crucial being the refinery's future operations. The Serbian government plans to finalize its stance on NIS to MOL by the end of the day on Friday, and MOL's board will decide on the proposal on Monday. Further details about the proposal were not provided.

The negotiations are time-sensitive, as Washington has set a deadline of May 22 for the Russian companies and MOL to finalize the sale, which needs Serbian government approval due to its 29.9% stake in NIS. The Serbian government, looking to increase its stake in NIS by 5%, is engaged in separate discussions with MOL apart from the Hungarian company's dealings with Gazprom and Gazprom Neft.

A MOL representative indicated that, in addition to the Serbian government's consent, the transaction must also receive approval from the U.S. Treasury's Office of Foreign Assets Control (OFAC). At a business forum in Belgrade on Friday, MOL's chief strategic officer, Gyorgy Bacsa, mentioned that the company is still in talks with both Russian shareholders and Serbia, expressing hope that OFAC would allow more time for discussions. He noted that if significant progress is made before May 22, a reasonable timeframe may be granted for finalizing the deal.

Earlier in the week, Djedovic Handanovic expressed that Serbia was not fully satisfied with some of MOL's proposals during the negotiations. The U.S. had imposed sanctions on NIS in October due to its Russian ownership as part of broader actions targeting Moscow's energy sector, although NIS has received a series of waivers from OFAC.