Privatization councillor of "Merrill Lynch - Raiffeisen investment" suggested that 49% of assets of company NIS be sold to future strategic partner of that company in the first phase

The recommendation of the privatization councillor for Petroleum INdustry of Serbia, consortium "Merrill Lynch-Raiffeisen investment", is that, in the first phase of the ownership transformation, the strategic partners should be offered 49% of the assets of NIS, along with the Pančevo Petrohemija, whereas the owner of the majority package of stocks would still be the State.

The privatization councillor is of the opinion that, following that, the strategic partner should invest 700-800m EUR in the modernization of production. After 2010, the State would be obliged to allot certain number of stocks to the strategic partner of NIS, which should make it possible for the partner to become the majority owner of the company.

According to earlier announcement, the suggestion of the privatization councillor has been delivered to the authorized in the Republic Ministry of Mining and Energy and, prior to June 2006, the Government of Serbia should decide whether to accept that suggestion.

Some of the companies that are interested in procurement of NIS are Russian "Lukoi", Hungarian "MOL", Austrian "OMV", "Hellenic Petroleum" from Greece and Slovenian "Petrol", whereas, allegedly, "British Petroleum" lost interest.