Srbijagas CEO on gas scandal

Srbijagas’s new CEO, Dusan Bajatovic, says that he does not know how much Serbia is paying Russia in commission for gas. He told B92 that both customers and the industry would have enough gas next year, and that the government would have to choose a supply strategy. Srbijagas CEO on gas scandal Bajatovic said that the price should be a further 30 percent higher to ensure that Srbijagas did not run at a loss. He told B92 that he would not, however, propose that to the government as the burden on customers would be excessive. Bajatovic said that he did not know how much Serbia was paying Russia in commission. He said that the central issues were not whether the agreements for supplying gas to Serbia had been fraudulent, which would be determined by the Anti-Organized Crime Administration (UBPOK), but whether gas could be received from Russia without a middleman, and who had missed the opportunity to buy up the shares in the Jugorosgas company. The Socialist Party of Serbia (SPS) official said that “it looks as if Jugorosgas is also charging Gazprom commission.” “The price is what it is. This is one of the best prices for gas in the region being sold by Gazprom,” said Bajatovic, adding that he would not know the exact amount of commission being paid until he visited Moscow. The Srbijagas boss said the ministry and UPBOK were checking the complete chronological records of business and agreements between Srbijagas and the Russians, financial documentation, the way and date the agreements were signed, who was being paid and how, after which the same checks would be run on Jugorosgas. He said that documents from the Russians showed that Gazprom had asked for a middleman for the deal. “Someone most have entered the agreement unnecessarily and someone will have to answer why we were unable to buy our own public company, that 25 percent stake, and why we ended up having someone new in the arrangement instead of splitting it 50-50,” Bajatovic said. He believes that it is possible to work without a go-between, but said that this was a question of time, which was why he would hold direct talks with Gazprom in Moscow to confirm if Serbia could store gas during the summer, when the price was lower. The goal of that would be that Serbia would not be in a situation of having to buy gas ad hoc because the price would be 15 to 30 percent higher. He said that the South Stream pipeline branch running through Serbia could be finished by 2014. Serbia is working on offering the gas agreement and NIS in the same package to Russia in order to protect the interests of the country and its citizens, Bajatovic said. Bajatovic (Fonet)

Srbijagas CEO on gas scandal

Bajatović said that the price should be a further 30 percent higher to ensure that Srbijagas did not run at a loss.

He told B92 that he would not, however, propose that to the government as the burden on customers would be excessive.

Bajatović said that he did not know how much Serbia was paying Russia in commission.

He said that the central issues were not whether the agreements for supplying gas to Serbia had been fraudulent, which would be determined by the Anti-Organized Crime Administration (UBPOK), but whether gas could be received from Russia without a middleman, and who had missed the opportunity to buy up the shares in the Jugorosgas company.

The Socialist Party of Serbia (SPS) official said that “it looks as if Jugorosgas is also charging Gazprom commission.”

“The price is what it is. This is one of the best prices for gas in the region being sold by Gazprom,” said Bajatović, adding that he would not know the exact amount of commission being paid until he visited Moscow.

The Srbijagas boss said the ministry and UPBOK were checking the complete chronological records of business and agreements between Srbijagas and the Russians, financial documentation, the way and date the agreements were signed, who was being paid and how, after which the same checks would be run on Jugorosgas.

He said that documents from the Russians showed that Gazprom had asked for a middleman for the deal.

“Someone most have entered the agreement unnecessarily and someone will have to answer why we were unable to buy our own public company, that 25 percent stake, and why we ended up having someone new in the arrangement instead of splitting it 50-50,” Bajatović said.

He believes that it is possible to work without a go-between, but said that this was a question of time, which was why he would hold direct talks with Gazprom in Moscow to confirm if Serbia could store gas during the summer, when the price was lower.

The goal of that would be that Serbia would not be in a situation of having to buy gas ad hoc because the price would be 15 to 30 percent higher.

He said that the South Stream pipeline branch running through Serbia could be finished by 2014. Serbia is working on offering the gas agreement and NIS in the same package to Russia in order to protect the interests of the country and its citizens, Bajatović said.