Hungary's MOL Eyes Stake in Sanctioned Serbian Refinery

Hungary's MOL may purchase a stake in Serbia’s NIS refinery, facing U.S. sanctions due to Russian ownership. Talks are ongoing as Serbia seeks a solution. Hungary has pledged support for Serbia’s fuel supply, with potential market transactions involving MOL, amidst Gazprom's stake being at risk.

Hungary's energy company MOL is considering buying a stake in Serbia's NIS refinery, which is currently owned by Russian entities and faces U.S. sanctions. This potential acquisition could play a crucial role in averting a shutdown of Serbia's sole refinery, which is struggling with halted crude oil supplies due to sanctions.

Prime Minister Viktor Orban, during an upcoming visit to Serbia, aims to discuss bilateral support, while his chief of staff, Gergely Gulyas, indicates discussions about possible market transactions are ongoing. Hungary's intention is to assist Serbia in ensuring an unimpeded fuel supply, amidst geopolitical tensions affecting refinery operations.

As stakes held by Gazprom Neft and Gazprom are under threat of government takeover unless sold within 50 days, Serbia pushes for alternatives. In this context, Hungary has committed to substantially increasing its crude oil and fuel shipments to support its neighbor, underlining the regional cooperation amid global geopolitical dynamics.

(With inputs from agencies.)