US Extends Deadline for MOL’s Negotiations to Acquire Stake in Sanctioned Serbian Oil Company NIS
US Treasury's OFAC grants Hungarian MOL until June 16 to finalize deal amid Gazprom-linked sanctions affecting NIS operations.
The US Treasury Department's Office of Foreign Assets Control (OFAC) has granted Hungarian oil company MOL Nyrt. an extension until June 16 to continue negotiations to acquire a controlling stake in Serbian oil refiner Naftna Industrija Srbije a.d. (NIS), a company partially owned by Russia's Gazprom.
Following a previous extension granted on May 22, MOL announced on June 6 that negotiations have advanced significantly, and the new deadline should allow the parties to finalize the transaction documentation. This development comes despite ongoing US sanctions targeting NIS due to its Gazprom ownership.
US Sanctions and Impact on NIS Operations
In January 2025, NIS was added to the US sanctions list because of Gazprom's stake in the company's share capital, with restrictions coming into effect on October 9, 2025. These sanctions have disrupted vital oil supplies via the Adriatic pipeline (JANAF) through Croatia and forced the shutdown of the NIS refinery in Pančevo, Serbia.
Gazprom Neft currently holds 44.9% of NIS shares, with an additional 11.3% owned by Gazprom's investment unit. The Serbian government controls 29.9%, while the remaining shares are held by private investors and company employees.
"The current extension from OFAC permits MOL to complete preparation of deal documents, reflecting progress in negotiations despite complex geopolitical constraints," a MOL statement said.
Serbian Minister of Mining and Energy Dubravka Djedović-Handanović reported on January 19 that MOL and Gazprom Neft had agreed on key terms for the eventual sale of the Russian stake in NIS. The Serbian government has also secured an improved position in the negotiations, with plans to increase its ownership by 5%.
Additionally, Abu Dhabi National Oil Co. (ADNOC) may join the deal, diversifying potential ownership. The finalized agreement must receive OFAC approval to proceed, with the US agency previously extending the license allowing shareholders to negotiate until March 24.
Notably, MOL had requested a deadline extension to July 6 to conclude talks, but OFAC set an earlier cutoff of June 16, underscoring US regulatory caution in transactions involving sanctioned entities.
Implications for US Businesses and Global Energy Markets
The US Treasury's measured approach signals continued vigilance over transactions linked to Russian energy firms amid geopolitical tensions. For American companies and investors, the development underscores persistent risks in regions affected by sanctions and conflicts.
Furthermore, the disruption of NIS operations due to sanctions and pipeline halts affects broader energy supply chains in Europe. US energy firms monitoring market shifts may find new opportunities or challenges depending on how ownership and operational control evolve post-sale.
For policymakers in Washington, the MOL-NIS case exemplifies the balancing act between enforcing sanctions and allowing controlled divestments that can stabilize regional energy markets.
