The ownership and sanctions uncertainty surrounding NIS extends beyond Serbia’s fuel market. NIS owns 90 per cent of HIP-Petrohemija, while the Serbian state retains the remaining 10 per cent. Petrohemija operates production complexes at Pančevo, Elemir and Crepaja, with nominal annual petrochemical capacity of approximately 700,000 tonnes.
The company’s reported loss increased from RSD7.7 billion in 2024 to RSD10.3 billion in 2025. Production was interrupted in December 2025 as sanctions affecting NIS disrupted feedstock availability, before operations restarted following temporary US licensing.
Petrohemija therefore represents an important part of MOL’s wider NIS exposure. Maintaining refinery throughput does not automatically guarantee profitable petrochemical production: the business also requires competitive feedstock pricing, reliable utilities, working capital and sufficient margins on polyethylene and other products.
A credible post-acquisition industrial plan must address Petrohemija separately from the Pančevo refinery. Restructuring, new investment or capacity rationalisation could affect more than a thousand employees and numerous domestic industrial customers.
