Serbia remains dissatisfied with MOL's proposals over NIS oil firm

BELGRADE, May 13 (Reuters) - Belgrade is not satisfied with a revised proposal by Hungary's MOL MOLB.BU in relation to its purchase of a majority stake in Serbia's oil company NIS NIIS.BEL, the country's energy minister said on Wednesday.

The talks to establish relations with the government, which holds 29.9% of NIS, are separate from those between MOL and NIS's current majority owners, Russia's Gazprom Neft SIBN.MM and Gazprom GAZP.MM, which hold 44.9% and 11.3%, respectively.

Serbia's energy minister Dubravka Djedovic Handanovic said the future operations of the country's only refinery, owned by NIS, and particularly its coverage of the local market, were the main stumbling block in the talks, without giving further details.

"We will not jeopardise security of supply, nor the influence that the refinery's operations have on the economy and businesses," she said in a statement.

Djedovic Handanovic had last week said Belgrade was also dissatisfied with MOL's earlier proposals.

She said talks would continue on Thursday and that the government wants to find a compromise, "but not at any cost".

MOL did not immediately respond to a request for comment.

The U.S. Treasury's Office of Foreign Assets Control imposed sanctions on NIS in October as part of wider measures targeting Russia's energy sector over the war in Ukraine, demanding the divestment of the Russian-owned shares in NIS.

MOL signed an agreement in January to buy the combined Gazprom Neft and Gazprom stakes, with Washington giving the Russian companies until May 22 to complete the sale.

Serbia also wants to increase its stake in NIS by 5%.