Prime minister: MOL's proposal in NIS acquisition negotiations is not acceptable to Serbia

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Prime Minister of Serbia Djuro Macut stated today - regarding the fact that the Serbian side is dissatisfied with the proposal presented by MOL in the negotiations to acquire a majority stake in NIS (Petroleum Industry of Serbia) - that he fully understands MOL's need to achieve the best possible terms for itself, but that this cannot be to the detriment of Serbia.

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"The proposal submitted by MOL is not fully acceptable to us. There need to be corrections, and above all relating to the stability of our (oil) market and supply. So, our refinery (in Pancevo) must work. These are the basic conditions: that the Serbian market is fully supplied with derivatives, that there is continuity in this and that there are guarantees that Serbia is primary in every sense in deciding what and how the company will produce and what the placements will be," Macut told RTS.

He added that these are the basic things that are being discussed, and pointed out that these are definitely red lines that cannot be crossed.

"Therefore, if there is an oil company that is in the territory of Serbia and is our national company, which it has always been, Serbia must certainly be a partner in the (acquisition) talks," said Macut.

The prime minister added that he "fully understands that we have really reached some limits where this needs to finally be resolved."

"We have those (US) sanctions that have lasted quite a long time and (the deadline) is constantly extended. There is understanding towards us from the American side, obviously, this is being extended for longer periods of time, but certainly everyone's patience is running somewhat out. Both us, but also the other side, in terms of negotiations, but also OFAC, which is a monitoring body that after all controls events in that area internationally. So I completely understand the impatience and, in general, on the other hand, MOL's need to achieve the best possible position in the contract, but this cannot be to the detriment of Serbia. The situation with that company needs to be completely clear and that is a completely clear thing," said Macut.

He went on to remind that Serbia is involved in the negotiations with MOL.

"There's no cause for concern. The negotiations are ongoing, that is, Serbia is involved in this phase, as the minister of energy has said, and as the president has already stated several times. There are certain stages in the talks," said Macut.

Asked whether the situation on the market is under control, Macut replied that it is.

"It's completely under control. We are making corrections by releasing certain quantities of oil from the reserves for processing. These are relatively small quantities, but that's how we maintain stable prices, there aren't any shortages, as you can see, we function in a completely normal manner. Of course, this needs to be resolved and we need reach a point when we should normalize it completely," said Macut.

He added that oil reserves are being replenished as much as needed and "according to the dynamic that is completely logical".

"We're not in any kind of panic or need to be worried about anything. Therefore, everything is as usual and stable, and I think there is definitely no room for concern," said Macut.

Minister of Mining and Energy Dubravka Djedovic Handanovic held a meeting with representatives of MOL yesterday, after which she said that the Serbian side was dissatisfied with the proposal they received, and added that Serbia remains committed to continuing negotiations with MOL and finding a compromise, but not at any cost.

(Telegraf Biznis/Tanjug)