The financial challenges at HIP-Petrohemija have added a new dimension to the ownership and sanctions uncertainty surrounding Naftna industrija Srbije (NIS), extending the impact beyond Serbia’s fuel market into the petrochemical sector.
NIS owns 90% of HIP-Petrohemija, while the Republic of Serbia holds the remaining 10% stake. The company operates production facilities in Pančevo, Elemir and Crepaja, with a nominal annual petrochemical production capacity of approximately 700,000 tonnes.
Petrohemija Records Higher Losses Amid Supply Disruptions
HIP-Petrohemija reported that its loss increased from RSD7.7 billion in 2024 to RSD10.3 billion in 2025. Production activities were suspended in December 2025 after sanctions affecting NIS disrupted the availability of feedstock required for petrochemical operations. Manufacturing resumed after temporary licensing was granted by the United States, allowing operations to restart. The interruption highlighted the dependence of Petrohemija’s production chain on stable access to raw materials supplied through the wider NIS industrial system.
Petrochemical Operations Require Separate Industrial Strategy
Petrohemija represents an important component of MOL’s broader exposure to NIS-related assets. Maintaining refinery operations does not by itself ensure profitable petrochemical production. The company’s performance also depends on competitive feedstock prices, reliable utility supplies, adequate working capital and market margins for polyethylene and other petrochemical products.
Future Decisions Could Affect Employees and Industrial Customers
Any post-acquisition industrial strategy will need to consider HIP-Petrohemija separately from the Pančevo refinery, with potential measures including restructuring, additional investment or capacity adjustments. Changes affecting the company could have consequences for more than 1,000 employees and a large network of domestic industrial customers that rely on Petrohemija’s production.
