FT: Gazprom fears no deal in Serbia

The Financial Times says Gazprom fears losing out on the energy deal with Serbia, and has consequently increased its bid. According to the FT’s correspondent in Belgrade, Gazprom has increased its initial offer of EUR 400mn for a 51 percent holding in the Serbian Oil Industry (NIS) in order to seal the deal before the first round of the Serbian presidential elections on Sunday. FT: Gazprom fears no deal in Serbia The Russian oil giant has offered to invest EUR 500mn and build a strategic pipeline through Serbia provided it receives a controlling stake, says the article. “However, the Russian company fears that its chances of reaching an agreement with the government are fading,” says the FT correspondent. The paper writes that the contract has prompted concern within the EU and that critics say that Gazprom is trying to acquire strategically important assets under their market value. The FT adds that big European players such as Austria’s OMV and Hungarian Mola have expressed their readiness to pay considerably more for NIS. Meanwhile, the government’s working group will meet today to discuss an energy cooperation agreement with Russia. Prime Minister Vojislav Kostunica is expected to head the group, though it is not known whether the meeting will be attended by Economy Minister Mladjan Dinkic, who opposes the energy deal with Russia. Government officials have not made the details of the agreement public, while Gazprom officials are also remaining silent on the matter. Gazprom spokesman Sergey Kupriyanov told Beta that it was still too early to say anything about a potential signing of the agreement. He said that if the deal went through, Serbia “will become the center of the Balkans and a very important player on the European energy market as a whole.” "First of all, Serbia will not be only getting money for a stake in the NIS and investments for the modernization of infrastructure, but also guaranteed deliveries of raw materials for decades in advance." "Other contenders for NIS do not have the raw material base and it is not excluded that they will have to buy Russian oil. This is the undisputed competitive advantage of our proposal," Kupriyanov said. Besides, said the representative of Gazprom, the passage of the main gas pipeline "Southern Creek" through Serbia will not only guarantee stable gas deliveries to Serbia, but also the status of a transit country for gas, which brings obvious financial benefits. "All this is the very reason why Gazprom is advocating a complex agreement, which would envisage all the mentioned projects," Kupriyanov said. As for the purchase of the controlling stake in NIS by Gazprom, Kupriyanov said, "this does not only give additional rights, but also obligations for the development of the company, which would become an efficient and competitive player on the European market." "Gazprom is a commercial organization, whose strategy is oriented towards maximum business efficiency, and the increase of capital, which is in the interest of more than 500,000 shareholders, some of whom are foreigners." "Our proposal to Serbia is aimed directly at this. From our point of view, this will not only be lucrative for Gazprom, but will enable Serbia to solve its energy problems for a long time," Kupriyanov said. It is thought that the agreement could be signed during Russian President Vladimir Putin’s two-day visit to Bulgaria, which starts today. However, statements from Moscow claim that no meetings between Putin and senior Serbian officials have been planned.

FT: Gazprom fears no deal in Serbia

The Russian oil giant has offered to invest EUR 500mn and build a strategic pipeline through Serbia provided it receives a controlling stake, says the article.

“However, the Russian company fears that its chances of reaching an agreement with the government are fading,” says the FT correspondent.

The paper writes that the contract has prompted concern within the EU and that critics say that Gazprom is trying to acquire strategically important assets under their market value.

The FT adds that big European players such as Austria’s OMV and Hungarian Mola have expressed their readiness to pay considerably more for NIS.

Meanwhile, the government’s working group will meet today to discuss an energy cooperation agreement with Russia.

Prime Minister Vojislav Koštunica is expected to head the group, though it is not known whether the meeting will be attended by Economy Minister Mlađan Dinkić, who opposes the energy deal with Russia.

Government officials have not made the details of the agreement public, while Gazprom officials are also remaining silent on the matter.

Gazprom spokesman Sergey Kupriyanov told Beta that it was still too early to say anything about a potential signing of the agreement.

He said that if the deal went through, Serbia “will become the center of the Balkans and a very important player on the European energy market as a whole.”

"First of all, Serbia will not be only getting money for a stake in the NIS and investments for the modernization of infrastructure, but also guaranteed deliveries of raw materials for decades in advance."

"Other contenders for NIS do not have the raw material base and it is not excluded that they will have to buy Russian oil. This is the undisputed competitive advantage of our proposal," Kupriyanov said.

Besides, said the representative of Gazprom, the passage of the main gas pipeline "Southern Creek" through Serbia will not only guarantee stable gas deliveries to Serbia, but also the status of a transit country for gas, which brings obvious financial benefits.

"All this is the very reason why Gazprom is advocating a complex agreement, which would envisage all the mentioned projects," Kupriyanov said.

As for the purchase of the controlling stake in NIS by Gazprom, Kupriyanov said, "this does not only give additional rights, but also obligations for the development of the company, which would become an efficient and competitive player on the European market."

"Gazprom is a commercial organization, whose strategy is oriented towards maximum business efficiency, and the increase of capital, which is in the interest of more than 500,000 shareholders, some of whom are foreigners."

"Our proposal to Serbia is aimed directly at this. From our point of view, this will not only be lucrative for Gazprom, but will enable Serbia to solve its energy problems for a long time," Kupriyanov said.

It is thought that the agreement could be signed during Russian President Vladimir Putin’s two-day visit to Bulgaria, which starts today.

However, statements from Moscow claim that no meetings between Putin and senior Serbian officials have been planned.