On Monday, Serbia’s energy minister announced that the Russian majority shareholders of the nation’s largest oil company, currently subject to U.S. sanctions, have reached an agreement to sell their share to the Hungarian energy firm MOL.

The proposed sale will be presented to the U.S. government for approval, as the company aims to prevent another sanctions-induced shutdown of Serbia’s only oil refinery.

“MOL and Gazprom Neft have established the primary terms for a future sale and purchase agreement,” stated Serbian Energy Minister Dubravka Đedović in a video message.

U.S. sanctions against the Petroleum Industry of Serbia (NIS), implemented as part of a broader effort by Washington to target Russia’s energy operations, led to the refinery’s closure in early December. This facility meets approximately 80% of Serbia’s fuel demands.

However, on December 31, the U.S. issued a temporary sanctions waiver for NIS, allowing the refinery to resume operations on Sunday.

NIS received a license from the U.S. Department of the Treasury’s Office of Foreign Assets Control, which permits it to continue functioning until January 23, and grants authorization to negotiate a sale until March 24.

“The terms of the agreement still require negotiation,” noted Đedović, adding that Abu Dhabi National Oil Company is also in discussions regarding participation in the acquisition.

She mentioned that Serbia had successfully increased its minority stake in NIS with the aim of achieving a level of ownership that would enhance its decision-making authority.

Đedović also indicated that MOL has committed to maintaining operations at the Pancevo refinery, alleviating previous worries that the facility might be closed as part of the agreement.

MOL confirmed that it had entered into a binding deal with Gazprom Neft for the purchase of its 56.15% share in NIS, and is in negotiations with Abu Dhabi National Oil Company to join the deal as a minority investor.

“MOL is dedicated to collaborating with the Serbian government to further bolster supply security in Serbia and the surrounding region,” stated Zsolt Hernádi, the company’s chairman.

Hungarian Foreign Minister Péter Szijjártó expressed support for the agreement, noting that the government would back MOL until the finalization of the deal.

In 2008, Serbia sold a majority stake in NIS to Gazprom for 400 million euros (approximately $470 million at current exchange rates), with the Russian company investing several billion euros into the enterprise since then. Currently, Gazprom Neft holds a 45% stake in NIS, which is under U.S. sanctions, and its parent company, Gazprom, transferred its 11.3% ownership in NIS to its affiliated entity, Intelligence, in September.