Hungary's MOL Maintains Talks for NIS Acquisition as Sanctions Continue
Ongoing Negotiations and Regulatory Challenges
Background of the Acquisition Talks
BUDAPEST, April 27 (Reuters) - Hungarian oil group MOL said on Monday talks about the purchase of a Russian stake in Serbian oil group NIS are ongoing, in line with a framework agreement signed earlier.
MOL signed an agreement on January 19 to buy a combined Gazprom Neft and Gazprom 56% stake in NIS, which is under U.S. sanctions. The U.S. Office of Foreign Assets Control (OFAC) gave the companies until May 22 to complete the sale.
Current Status of Negotiations
"OFAC had extended MOL's negotiations licence until May 22 so talks about the transaction are ongoing in line with the framework agreement signed earlier," MOL said in an emailed response to Reuters questions.
Requirements for Closing the Transaction
"In order to close the transaction, in addition to signing the contract, further licences and the approval of OFAC and the Serbian government authorities will also be needed," it said.
Compliance and Strategic Objectives
MOL said it was complying with all regulations and conditions, and the goal of the acquisition was to strengthen long-term supply security for Serbia and the region.
Impact of Sanctions on the Deal
OFAC imposed sanctions on NIS in October as part of wider measures targeting Russia's energy sector over the war in Ukraine, and demanded the divestment of Gazprom Neft and Gazprom, its Russian majority owners.
Sanctions Waiver and Timeline
Earlier this month, NIS secured a 60-day sanctions waiver from the United States until June 16.
(Reporting by Krisztina Than; Editing by Alexander Smith)
