NIS deal on Friday?

The contract for the sale of a 51 percent stake in NIS to Gazprom is due to be signed on Friday in Belgrade, Beta has learned from circles close to Russians. The transaction will be effected through the Moscow Bank, the same sources claim. NIS deal on Friday? Gazprom Chairman Alexei Miller will be in Belgrade on Friday for another round of talks to finalize the energy agreement with Serbia, daily Politika reports. The Serbian side has prepared a platform for continuing negotiations, and Politika states that there are several points in the platform that Serbia will insist on. The news however could not be confirmed by Prime Minister Mirko Cvetkovic. He said that there was no official agreement between the two sides that the contract for the sale of the Serbian Oil Industry (NIS) would be signed on Friday, December 5, though he did not rule out the possibility either. The Russian Interfax news agency last week reported that the Russian delegation would be led by Gazprom CEO Alexei Miller. The first is that Serbia sees all three projects—the construction of the South Stream gas pipeline, completion of the Banatski Dvor storage facility, and the sale of the Serbian Oil Industry (NIS) for EUR 400mn—as one joint package. In preparation of the platform, Serbia stresses that it has every confidence in the political guarantee that the project will be implemented in accordance with the inter-state agreement, but it wants more economic assurances. The Belgrade negotiators have prepared two options for the guarantees. The first is the postponed entry into force of the contract for the sale of a 51 percent stake in NIS. Under this option, NIS would be sold on the day the agreement was signed, but its promulgation would hinge on a positive feasibility study for the construction of the pipeline by June 30, 2010 at the latest, with the pipeline due to enter into operation no later than December 31, 2015. Failure to adopt the feasibility study by June 30, 2010 would signal the collapse of the NIS deal. The Serbian side commits not to sell NIS to anyone else in the intervening period between the contract’s signing and its entry into force, and that it will sell to the Russians provided that the guarantees are met for the agreed price of EUR 400mn. The second option is to give the Russians only 25 percent of NIS for EUR 400mn. The other 26 percent would be given to the Russians at no added cost upon signing of a positive feasibility study for the pipeline and storage facility. Should no study be forthcoming, the Russians would retain a 25 percent holding in NIS. Gazprom would have the right to sell its stake in NIS provided it refunds the Serbian side for loss of earnings, while the Serbian side would be obliged to return the EUR 400mn. Under this option, the administrative rights to the company would be shared.

NIS deal on Friday?

Gazprom Chairman Alexei Miller will be in Belgrade on Friday for another round of talks to finalize the energy agreement with Serbia, daily Politika reports.

The Serbian side has prepared a platform for continuing negotiations, and Politika states that there are several points in the platform that Serbia will insist on.

The news however could not be confirmed by Prime Minister Mirko Cvetković. He said that there was no official agreement between the two sides that the contract for the sale of the Serbian Oil Industry (NIS) would be signed on Friday, December 5, though he did not rule out the possibility either.

The Russian Interfax news agency last week reported that the Russian delegation would be led by Gazprom CEO Alexei Miller.

The first is that Serbia sees all three projects—the construction of the South Stream gas pipeline, completion of the Banatski Dvor storage facility, and the sale of the Serbian Oil Industry (NIS) for EUR 400mn—as one joint package.

In preparation of the platform, Serbia stresses that it has every confidence in the political guarantee that the project will be implemented in accordance with the inter-state agreement, but it wants more economic assurances.

The Belgrade negotiators have prepared two options for the guarantees.

The first is the postponed entry into force of the contract for the sale of a 51 percent stake in NIS. Under this option, NIS would be sold on the day the agreement was signed, but its promulgation would hinge on a positive feasibility study for the construction of the pipeline by June 30, 2010 at the latest, with the pipeline due to enter into operation no later than December 31, 2015.

Failure to adopt the feasibility study by June 30, 2010 would signal the collapse of the NIS deal.

The Serbian side commits not to sell NIS to anyone else in the intervening period between the contract’s signing and its entry into force, and that it will sell to the Russians provided that the guarantees are met for the agreed price of EUR 400mn.

The second option is to give the Russians only 25 percent of NIS for EUR 400mn. The other 26 percent would be given to the Russians at no added cost upon signing of a positive feasibility study for the pipeline and storage facility.

Should no study be forthcoming, the Russians would retain a 25 percent holding in NIS. Gazprom would have the right to sell its stake in NIS provided it refunds the Serbian side for loss of earnings, while the Serbian side would be obliged to return the EUR 400mn. Under this option, the administrative rights to the company would be shared.