Serbia is not satisfied with a revised proposal from Hungary’s MOL Group to acquire a majority stake in Naftna Industrija Srbije (NIS), Energy Minister Dubravka Dedovic Handanovic said on May 13, adding negotiations would continue.

The revised offer failed to address key concerns over the future operation of the Pancevo oil refinery and its role in supplying the domestic market, the minister said in a statement.

“We will not jeopardise our security of supply, nor the impact that refinery operations have on the economy,” Dedovic Handanovic said. “We want to reach a compromise, but not at any cost.”

MOL has been negotiating for months to acquire a 56% stake in NIS from Russia’s Gazprom group, after Western sanctions pressured Moscow to divest.

Talks between MOL and Gazprom Neft are continuing in parallel, the minister said, noting that their outcome will be crucial for approval from the US Treasury’s Office of Foreign Assets Control (OFAC), which must sign off on any deal.

The negotiations have progressed slowly since January, when Gazprom and Gazprom Neft agreed in principle to sell their combined stake. The process has been sustained by repeated US waivers allowing NIS to continue operating its refinery, with the current licence set to expire in mid-June.

Serbia has insisted that any new owner must guarantee stable refinery operations and prioritise domestic fuel supply, reflecting concerns over energy security in the Western Balkans’ largest economy.

Central bank governor Jorgovanka Tabakovic said delays in resolving NIS ownership were “exhausting and costly”.

Uncertainty around the deal has grown in recent weeks after the departure of Viktor Orban in Hungary, with Serbian officials signalling doubts over whether an agreement with MOL will be reached. The government said it is also considering contingency options; likely a potential state buyout of Russia’s stake or the emergence of an alternative investor.

One such alternative surfaced last week in the form of a €2bn bid from Serbian businessman Ranko Mimović, though the proposal has been met with scepticism due to his limited track record in the energy sector and dubious business history.

Gazprom Neft has said it remains in exclusive negotiations with MOL.

The outcome ultimately hinges on Moscow’s willingness to sell, with the Serbian state holding only a 30% stake and limited influence over the core transaction.