US Extends Deadline for MOL's Negotiations to Acquire Serbian Oil Firm NIS Amid Sanctions
US Treasury grants MOL until June 16 to finalise talks on purchasing Gazprom’s stake in Naftna Industrija Srbije, impacting European energy markets.
The US Treasury's Office of Foreign Assets Control (OFAC) has granted Hungary's MOL Nyrt. an extension until June 16 to continue negotiations for the acquisition of a controlling stake in Serbia's Naftna Industrija Srbije (NIS), a company partially owned by Russia's Gazprom.
This extension follows previous delays and reflects significant progress in the talks, MOL reported on June 6 via the Budapest Stock Exchange. The deal, if finalised, would mark a critical shift in ownership of a key European energy asset amid ongoing US sanctions on Russian-linked entities.
Impact on UK and European Energy Markets
Since January 2025, NIS has been under US sanctions due to Gazprom's 44.9% stake, which, along with an 11.3% holding by Gazprom's investment division, led to the inclusion of NIS on the US sanctions list in October 2025. These measures disrupted oil supplies via the Adriatic JANAF pipeline through Croatia and halted operations at NIS's Pančevo refinery, underlining European energy vulnerabilities.
"The current extension will allow MOL to finalise transaction documentation and conclude negotiations," a MOL spokesperson said, highlighting the strategic importance of the deal for regional energy stability.
The Serbian government owns 29.9% of NIS, with the remaining shares held by private investors and company employees. Negotiations have included terms to improve Serbia’s position in NIS, with the possibility for Serbia to increase its stake by 5%. Additionally, the Abu Dhabi National Oil Company (ADNOC) may join the transaction, indicating broader international interest.
London markets have been closely monitoring developments due to the potential effects on sterling and European energy security. The acquisition could affect the regional supply dynamics and investor confidence, particularly as the UK seeks to diversify energy sources and reduce dependence on Russian energy.
The final agreement awaits formal approval from OFAC, which has previously extended permissions for shareholder negotiations. MOL initially requested a deadline extension to July 6, but OFAC set a stricter deadline of June 16, reflecting the urgency of resolving ownership amid geopolitical tensions.
As negotiations proceed, UK and EU stakeholders are weighing the implications for energy market stability and the strategic role of London as a hub for energy finance and trading. The outcome of this transaction may influence future investment flows and regulatory approaches toward sanctioned Russian assets in European markets.
