Here's EXACTLY how MOL's takeover of part of NIS will affect Serbia: Well-known analyst speaks

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Analyst Srdjan Barac said today that Hungary's MOL is currently the least bad solution for NIS (Petroleum Industry of Serbia) - if it is currently not possible the state to become the majority owner. Barac also said he believes that would be the best solutions for both NIS and the state.

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Barac told Tanjug that at this moment it is important for Serbia to "catch up energy-wise,  diversify and have as many important partners as possible with whom it can create levers that will guarantee uninterrupted supply, as well as growth and prosperity in that sector, that the country desperately needs.

Barac made these statements commenting on Minister of Mining and Energy Dubravka Djedovic Handanovic saying that in the future MOL would manage NIS as a majority shareholder in a joint company with ADNOC from the United Arab Emirates, which is in negotiations with MOL about the purchase of Gazprom Neft's stake in NIS, while that Arab company would be represented in the management bodies.

When asked whether the deadline set by the US Office for Foreign Assets Control (OFAC) for negotiations on the sale of the Russian share, extended until March 24, was a form of political or economic pressure and how much room for maneuver Serbia has, Barac assessed that it is a "par excellence political issue that has implications for the economy, because without energy the economy collapses."

Without (sufficient) energy supplies an economic pictureis  painted that stops direct foreign investments, he noted, and added that the issue of NIS will definitely be resolved at the political level, although the profit is an important thing in those negotiations.

Asked whether Serbia's potential participation in the Hungarian Paks II nuclear power plant is a strategic advantage or a long-term financial obligation with uncertain benefits, Barac assessed it would be a strategic advantage because having enough electricity is a signal to large companies that Serbia is a stable place for investment and that the country has caught up with the rapidly developing world and is looking for more electricity.

"A project like that shows that Serbia is thinking long-term and that Serbia is a good place for investments," the analyst said.

Asked whether nuclear energy can become part of Serbia's energy future, Barac replied that nuclear energy must become part of Serbia's reality, and added that the mistake that happened in the past when research and development of nuclear energy was stopped must be corrected, because that is the only way Serbia can be a place that is good for investments and a country that has a perspective and a future that will not depend on geopolitical relations and upsets.

Speaking about energy cooperation between Hungary and Serbia, Barac said it sends a political message to everyone, because the leaders of the two countries have shown that they can leave behind everything that happened in the past, look to the future and do something that will benefit both nations.

(Telegraf.rs/Tanjug)