Belgrade/Budapest – Hungary could acquire a stake in Serbia’s Russian-owned NIS refinery, with ongoing discussions aimed at ensuring continued crude oil and gas supplies for both countries, officials said Thursday.

The NIS refinery, Serbia’s only oil processing facility, is under U.S. sanctions due to its Russian ownership, which has halted crude deliveries via Croatia’s JANAF pipeline. Belgrade warned the refinery may need to shut down unless sanctions relief is granted.

Prime Minister Viktor Orban, who met Serbian President Aleksandar Vucic on Thursday, said he would hold talks on Friday to secure Russian crude and gas supplies for Hungary, which could also allow the country to provide crude to neighboring Serbia. Orban did not confirm the location of the talks or the parties involved amid reports he might meet Russian President Vladimir Putin in Moscow.

Orban, a known ally of both Putin and former U.S. President Donald Trump, has maintained Hungary’s Russian energy deliveries despite EU-wide efforts to reduce dependence on Moscow. He expressed willingness for Hungary to play a role in NIS, noting that the decision ultimately rests with Serbia.

Gergely Gulyas, Orban’s chief of staff, added that a “normal market transaction” could be an option, with MOL, Hungary’s leading oil company, potentially taking a greater role. “It is in the interest of NIS that Russian ownership should end,” he said.

Serbia’s government has set a 50-day deadline for Russian owners Gazprom Neft (44.9%) and Gazprom (11.3%) to sell their stakes, after which Belgrade may take over operations and offer to buy them out. The Serbian government holds 29.9%, with the remainder owned by smaller shareholders.

Meanwhile, Hungary’s Foreign Minister Peter Szijjarto said MOL would increase crude oil and fuel deliveries to Serbia by 2.5 times in December, ensuring the Balkan nation maintains fuel supplies amid the sanctions disruption.