Cvetković: Govt. stands by Russian deal

Prime Minister Mirko Cvetkovic says that Serbia fully supports the energy agreement with Russia. The prime minister told reporters today while visiting workers at the site of the Belgrade bypass, that negotiations would be held regarding the gas-fuel arrangement and the sale of the Serbian Oil Industries (NIS), but that he could not go into details. Cvetkovic: Govt. stands by Russian deal Cvetkovic added that the market valuation of NIS currently under way was necessary so that citizens with the right to free shares in the company could know exactly how much to expect from its sale. The energy agreement between Serbia and Russia was signed on January 25 in Moscow. It was signed on behalf of the Serbian government by then Infrastructure Minister Velimir Ilic, and the signing was also attended by President Boris Tadic and former Prime Minister Vojislav Kostunica. On the Russian side, the agreement was signed by Industry and Energy Minister Viktor Khristenko. The agreement, which is awaiting ratification by the Serbian parliament, provides for the sale of a 51 percent stake in NIS to Russian Gazprom or its sister company. According to the text of the accompanying protocol, Gazpromneft is expected to invest EUR 500mn in NIS, and the agreement must be signed by the end of 2008. Economy Minister Mladjan Dinkic said on August 6 that the Deloitte and Touche consulting company would calculate NIS’s estimated value by September in order to enter negotiations with the Russians regarding the sale price of the company. The consulting agency will be paid EUR 480,000 for its work. According to Dinkic, the book-keeping value of NIS’s capital in 2007 was about EUR 1.2bn, but the market value was never determined. Mirko Cvetkovic (FoNet, archive)

Cvetković: Govt. stands by Russian deal

Cvetković added that the market valuation of NIS currently under way was necessary so that citizens with the right to free shares in the company could know exactly how much to expect from its sale.

The energy agreement between Serbia and Russia was signed on January 25 in Moscow.

It was signed on behalf of the Serbian government by then Infrastructure Minister Velimir Ilić, and the signing was also attended by President Boris Tadić and former Prime Minister Vojislav Koštunica. On the Russian side, the agreement was signed by Industry and Energy Minister Viktor Khristenko.

The agreement, which is awaiting ratification by the Serbian parliament, provides for the sale of a 51 percent stake in NIS to Russian Gazprom or its sister company.

According to the text of the accompanying protocol, Gazpromneft is expected to invest EUR 500mn in NIS, and the agreement must be signed by the end of 2008.

Economy Minister Mlađan Dinkić said on August 6 that the Deloitte and Touche consulting company would calculate NIS’s estimated value by September in order to enter negotiations with the Russians regarding the sale price of the company.

The consulting agency will be paid EUR 480,000 for its work.

According to Dinkić, the book-keeping value of NIS’s capital in 2007 was about EUR 1.2bn, but the market value was never determined.