NIS faces uncertainty as OFAC license expiration approaches

The future operations of Naftna Industrija Srbije (NIS) face uncertainty as the current OFAC operational license is set to expire on August 28. Serbian Energy Minister Dubravka Đedović Handanović stated that the government will wait until the last moment for a decision regarding the license extension.

Banking institutions are currently seeking explicit permission from the U.S. administration to conduct necessary financial transactions. Banks are reportedly hesitant to proceed without clear regulatory coverage to avoid the risk of being subject to secondary sanctions.

In addition to the license, the ownership structure of NIS remains a critical issue. A shareholder agreement signed in June between Serbia and the MOL Group outlines potential future relations should MOL become the majority owner. The finalization of the ownership transaction requires regulatory approvals, including those from OFAC.