Sanctions against the Russian-Serbian company NIS are expected to take effect after midnight tonight. According to sources close to the Kompas portal, Hungarian oil company MOL is preparing to take over NIS’s role in the Serbian market during the sanctions period. MOL has signed a contract with JANAF, a key oil transport company, to import refined oil derivatives and address the supply gap in Serbia, similar to the support provided during last year’s overhaul of the Pančevo refinery, but on a larger scale.
While officials have not yet provided specifics on the impact of foreign banks blocking NIS’s accounts or the company’s ability to purchase crude oil on the global market, sources indicate that MOL’s involvement is meant to bridge the crisis in Serbia’s fuel market. MOL has already supplied Serbia with processed oil derivatives from its refineries in Budapest and Rijeka, delivered via the Danube River. The company’s proximity to Serbia—its refineries are less than 500 kilometers away—positions it as the primary alternative supplier.
The planned takeover by MOL is intended to fill the gap left by NIS’s inability to operate fully under sanctions. The contract with JANAF, signed by MOL, will allow the company to import oil derivatives and supply the Serbian market during the sanctions period. This supply will ensure continued fuel availability, especially to industries, which saw a 5.8% decrease in production in March 2024 due to the Pančevo refinery shutdown.
MOL’s involvement is seen as a strategic move, as it could eventually become the primary supplier for Serbia, mitigating potential shortages during the sanctions. Although MOL initially may not find it profitable to import fuel only for its own stations, securing guarantees to be the dominant supplier during the sanctions could make the operation viable.
Serbia has been stockpiling large quantities of oil derivatives from NIS in recent weeks, ensuring a reserve that could cover the market for up to three months. This gives MOL enough time to establish a consistent supply chain. The company is also ready to increase deliveries by rail and tankers from its Rijeka refinery to meet Serbia’s industrial fuel needs.
Meanwhile, the Serbian government is unlikely to let NIS collapse, as it is one of the country’s largest domestic companies. The key challenge now is the possibility that banks may demand early repayment of loans, fearing that NIS could lose income due to the sanctions. While the situation remains uncertain, there is hope that sanctions could be eased in the coming months as part of an agreement between global leaders, including Donald Trump and Vladimir Putin. If this occurs, NIS could return as a significant market player, though it may have to share the market with MOL, potentially permanently.
During the sanctions period, NIS will continue operations but at reduced capacity, sourcing oil only from domestic fields in Vojvodina. Payments at NIS stations may be restricted to cash or Dina cards. If banks demand early loan repayment, it is anticipated that the Serbian government, as a minority partner in NIS, would step in to cover the cost from the national budget.
