Energy deal talks set to continue

Negotiations over the energy agreement between Serbia and Russia continue today in Belgrade. The Russians are expected to declare their position on Belgrade’s proposals so far. Energy deal talks set to continue Serbia's negotiating position is that all three contracts – the South Stream pipeline, natural gas storage facility in Banatski Dvor and the Serbian oil monopoly, NIS, sale – should be treated as one package, which was initially the Russians' demand. Beta news agency is reporting that the Russian side "arrived at NIS via the pipeline". "If there is no pipeline, there is no NIS,” Beta quoted its source with the Serbia team. State Secretary for Trade and Privatization Nebojsa Ciric will heading Serbia's negotiators. The main Russian negotiator for the realization of the energy agreement Dmitry Malishev, who has been in Belgrade since Thursday, told Itar-Tass on Saturday that the pipeline, storage facilities and the NIS contracts might be signed on November 24 and 25 in Moscow. The Russian side should state its position on a Serbian government suggestion that EUR 700mn should be invested in NIS, instead of the previously agreed EUR 500mn, and that besides the 51 percent of shares, to be sold for EUR 400mn, the Russians should buy an additional 19 percent of Serbia’s oil industry in accordance with the laws. Belgrade's suggestions, as reported last week by the daily Blic, signed by Serbia’s Prime Minister Mirko Cvetkovic and Economy Minister Mladjan Dinkic, include a request that the South Stream pipe line should be treated as a branch route, with a 20bn cubic meters annual capacity. The Serbian government also tried to secure its position case the Russians fail to fulfill their contractual obligations, by conditioning the sale of NIS with the South Stream pipeline construction. The Serbian team previously refused the Russian motion that the agreed investments of EUR 500mn be provided with NIS company taking out a loan, while Gazprom would serve as a guarantee for that arrangement. The government also asked that Gazprom should immediately invest EUR 500mn in NIS, and that the Serbia’s oil industry should receive an additional EUR 700mn loan – in order to get to the price needed to renew the refinery and the costs for company’s efficient functioning. Cvetkovic particularly insisted that investments should be increased, since it was estimated that Serbia’s three oil refineries needed more than EUR 1bn of investments. The Serbian side is additionally cautious because of information that due to a lack of funds, Russia might scrap its intention to build the North Stream pipeline, whereas the South Stream is practically not even mentioned, reports said.

Energy deal talks set to continue

Serbia's negotiating position is that all three contracts – the South Stream pipeline, natural gas storage facility in Banatski Dvor and the Serbian oil monopoly, NIS, sale – should be treated as one package, which was initially the Russians' demand.

Beta news agency is reporting that the Russian side "arrived at NIS via the pipeline".

"If there is no pipeline, there is no NIS,” Beta quoted its source with the Serbia team.

State Secretary for Trade and Privatization Nebojša Ćirić will heading Serbia's negotiators.

The main Russian negotiator for the realization of the energy agreement Dmitry Malishev, who has been in Belgrade since Thursday, told Itar-Tass on Saturday that the pipeline, storage facilities and the NIS contracts might be signed on November 24 and 25 in Moscow.

The Russian side should state its position on a Serbian government suggestion that EUR 700mn should be invested in NIS, instead of the previously agreed EUR 500mn, and that besides the 51 percent of shares, to be sold for EUR 400mn, the Russians should buy an additional 19 percent of Serbia’s oil industry in accordance with the laws.

Belgrade's suggestions, as reported last week by the daily Blic, signed by Serbia’s Prime Minister Mirko Cvetković and Economy Minister Mlađan Dinkić, include a request that the South Stream pipe line should be treated as a branch route, with a 20bn cubic meters annual capacity.

The Serbian government also tried to secure its position case the Russians fail to fulfill their contractual obligations, by conditioning the sale of NIS with the South Stream pipeline construction.

The Serbian team previously refused the Russian motion that the agreed investments of EUR 500mn be provided with NIS company taking out a loan, while Gazprom would serve as a guarantee for that arrangement.

The government also asked that Gazprom should immediately invest EUR 500mn in NIS, and that the Serbia’s oil industry should receive an additional EUR 700mn loan – in order to get to the price needed to renew the refinery and the costs for company’s efficient functioning.

Cvetković particularly insisted that investments should be increased, since it was estimated that Serbia’s three oil refineries needed more than EUR 1bn of investments.

The Serbian side is additionally cautious because of information that due to a lack of funds, Russia might scrap its intention to build the North Stream pipeline, whereas the South Stream is practically not even mentioned, reports said.