Shoigu visit put back till September

The arrival of a Russian delegation for direct talks on NIS and Russo-Serbian cooperation has been postponed till September. A spokeswoman for the Russian Emergency Situations Ministry said that the visit of the Minister and Co-President of the Inter-Governmental Committee for Cooperation with Serbia Sergei Shoigu had been put back because of the South Ossetian crisis. Shoigu visit put back till September The reason for the Russian delegation’s visit had been, according to certain Serbian media, delays in ratification of the energy deal, while Shoigu had also been expected to submit a angry protest note at the Privatization Agency’s decision to engage Deloitte & Touche consultants to conduct a market valuation of the Serbian Oil Industry (NIS). “It’s unusual for a document signed by two presidents, two prime ministers, and two ministers to be called into question,” claims a government source of daily Danas, adding that the Russians have been unpleasantly surprised by the irresponsible manner in which Serbian officials have addressed the agreement. “The Energy Ministry’s view is that the agreement is indeed of major significance to Serbia, and that it must be respected in the form that was agreed on. This was recently confirmed by President Boris Tadic, who stated that the energy agreement with Russia was in our vital and national interests. That’s why the most likely scenario is that ratification of the deal and the Protocol signed in January will come into force automatically,” says the ministry. The ministry adds that currently no decision has been taken as concerns possible alterations to the Protocol in terms of price, should the Deloitte & Touche study reveal that NIS is worth more than initially believed. “It is not clear whether Deloitte will conduct a valuation, still less what the valuation might reveal,” it is stated. The energy deal with Russia returned to the media spotlight when the Privatization Agency decided to pay Deloitte EUR 480,000 to carry out the study. This raised the question of whether the Protocol, which stipulates that 51 percent of NIS’s capital will be sold for EUR 400mn (together with a mandatory investment of at least EUR 500mn by 2012) after its ratification in the Serbian parliament, might undergo changes or come into force automatically. Russian officials have publicly stated that there can be no further talks on price, as it has already been set, though they have expressed their dissatisfaction with the delays in ratifying the project, as well as with the fact that NIS’s debts have increased in the meantime, while its assets are disappearing (the company recently sold its stake in the Hyatt Hotel). There have also been “stronger” messages, one of which was that if the issue of price was raised, the Russians’ next offer would be USD 1. Gazpromneft expects the valuation of NIS, launched by the Privatization Agency, to “confirm the fairness and wisdom” of the agreement, said Gazprom CEO Dmitry Malishev. Serbia and Russia signed the inter-governmental agreement on cooperation in the oil and gas sector on January 26. Sergei Shoigu (FoNet, archive)

Shoigu visit put back till September

The reason for the Russian delegation’s visit had been, according to certain Serbian media, delays in ratification of the energy deal, while Shoigu had also been expected to submit a angry protest note at the Privatization Agency’s decision to engage Deloitte & Touche consultants to conduct a market valuation of the Serbian Oil Industry (NIS).

“It’s unusual for a document signed by two presidents, two prime ministers, and two ministers to be called into question,” claims a government source of daily Danas, adding that the Russians have been unpleasantly surprised by the irresponsible manner in which Serbian officials have addressed the agreement.

“The Energy Ministry’s view is that the agreement is indeed of major significance to Serbia, and that it must be respected in the form that was agreed on. This was recently confirmed by President Boris Tadić, who stated that the energy agreement with Russia was in our vital and national interests. That’s why the most likely scenario is that ratification of the deal and the Protocol signed in January will come into force automatically,” says the ministry.

The ministry adds that currently no decision has been taken as concerns possible alterations to the Protocol in terms of price, should the Deloitte & Touche study reveal that NIS is worth more than initially believed. “It is not clear whether Deloitte will conduct a valuation, still less what the valuation might reveal,” it is stated.

The energy deal with Russia returned to the media spotlight when the Privatization Agency decided to pay Deloitte EUR 480,000 to carry out the study.

This raised the question of whether the Protocol, which stipulates that 51 percent of NIS’s capital will be sold for EUR 400mn (together with a mandatory investment of at least EUR 500mn by 2012) after its ratification in the Serbian parliament, might undergo changes or come into force automatically.

Russian officials have publicly stated that there can be no further talks on price, as it has already been set, though they have expressed their dissatisfaction with the delays in ratifying the project, as well as with the fact that NIS’s debts have increased in the meantime, while its assets are disappearing (the company recently sold its stake in the Hyatt Hotel).

There have also been “stronger” messages, one of which was that if the issue of price was raised, the Russians’ next offer would be USD 1.

Gazpromneft expects the valuation of NIS, launched by the Privatization Agency, to “confirm the fairness and wisdom” of the agreement, said Gazprom CEO Dmitry Malishev.

Serbia and Russia signed the inter-governmental agreement on cooperation in the oil and gas sector on January 26.