Energy deal with Russia to be signed Jan. 25

The cabinet has met in Belgrade Tuesday and adopted the text of an agreement on energy cooperation with Russia. Infrastructure Minister Velimir Ilic has been authorized to sign the deal with Gazprom in Moscow on Jan. 25, a statement from the meeting said. The Democrats (DS), the Democratic Party of Serbia (DSS) and New Serbia ministers voted in favor. Energy deal with Russia to be signed Jan. 25 The session today was announced late last evening by Prime Minister Vojislav Kostunica. "This is Serbia's biggest economic undertaking, and this agreement will guarantee our country's huge economic development," said Kostunica of the deal that at times strained relations within the ruling coalition. While Kostunica's Democratic Party of Serbia (DSS) endorsed the project, senior coalition partners, President Boris Tadic's Democrats (DS) were not publicly either rejecting or accepting it, while Economy Minister Mladjan Dinkic's G17 Plus was against the deal. "In this way, the government is securing a stable and constant supply of energy for all our citizens and economy for years to come," the prime minister explained last night. The government's basic economic goal is to for Serbia to be strong and this strategic agreement with Russia will have exceptional significance in achieving this, Kostunica added. The deal adopted was presented on Dec. 11 in Belgrade, by Minister of Energy and Mining Aleksandar Popovic and Russian Ambassador to Serbia Aleksandr Alekseyev. On Dec. 29, the cabinet adopted a platform for talks with Russia on a cooperation agreement in the oil and natural gas industries. It has been reported that Russia has offered EUR 400-500mn for a majority stake in the state-run NIS oil monopoly, together with another EUR 500mn in investment in the period ending in 2012. In return, oil and natural gas giant Gazprom would build a segment of its South Stream natural gas pipeline through Serbia. No firm guarantees were provided at the time, however. Kostunica, his deputy Djelic during the session today (Tanjug)

Energy deal with Russia to be signed Jan. 25

The session today was announced late last evening by Prime Minister Vojislav Koštunica.

"This is Serbia's biggest economic undertaking, and this agreement will guarantee our country's huge economic development," said Koštunica of the deal that at times strained relations within the ruling coalition.

While Koštunica's Democratic Party of Serbia (DSS) endorsed the project, senior coalition partners, President Boris Tadić's Democrats (DS) were not publicly either rejecting or accepting it, while Economy Minister Mlađan Dinkić's G17 Plus was against the deal.

"In this way, the government is securing a stable and constant supply of energy for all our citizens and economy for years to come," the prime minister explained last night.

The government's basic economic goal is to for Serbia to be strong and this strategic agreement with Russia will have exceptional significance in achieving this, Koštunica added.

The deal adopted was presented on Dec. 11 in Belgrade, by Minister of Energy and Mining Aleksandar Popović and Russian Ambassador to Serbia Aleksandr Alekseyev.

On Dec. 29, the cabinet adopted a platform for talks with Russia on a cooperation agreement in the oil and natural gas industries.

It has been reported that Russia has offered EUR 400-500mn for a majority stake in the state-run NIS oil monopoly, together with another EUR 500mn in investment in the period ending in 2012.

In return, oil and natural gas giant Gazprom would build a segment of its South Stream natural gas pipeline through Serbia. No firm guarantees were provided at the time, however.