Energy deal talks "go smoothly"

Energy and Mining Minister Petar Skundric said on Saturday that the talks on the strategic Russo-Serbian energy agreement are progressing without problems. Skundric, SPS, told Beta news agency in an interview that the negotiations over the sale of a 51 percent stake in the country's oil monopoly NIS, the construction of the South Stream pipeline through Serbia, and of the underground natural gas storage in Banatski Dvor are developing "within the legal framework defined by the arrangement". Energy deal talks "go smoothly" All the elements of the agreement have been ratified in parliament. The minister, however, could not specify when the contracts to finalize the deal will be signed, and stressed that both sides wished to see this happen in a ceremony, when the inter-state economic committee meets in Moscow on Nov. 24. "Whether we'll manage to agree on everything by that day, I cannot confirm. I think it is not important if the contracts are signed then, or a couple of days later, what is important is to reach an optimal result, acceptable for both sides," Skundric said. He added that the talks currently held are mostly dedicated to expert legal issues that must be defined in a way offering the most protection to both countries. The minister also denied media reports that Belgrade is advocating a postponement of the NIS sale contract, set to be taken over by Gazpromneft, and said the NIS deal is a part of the package. Skundric could not specify what NIS assets will be sold to the Russians, since, as he put it, "the list is huge", and explained that it included refineries, gas stations, and other property. Asked whether Gazpromneft will also gain the raw oil drilling concession rights NIS has in Angola, he said that this has not been determined to date, but that it will be discussed. Skundric also commented on the gas prices in Serbia to say that they are currently "RSD 34 per cubic meter on the border with Hungary", while as the gas arrives to the households, Serbians pay RSD 30.01. All this, the minister explained, is pushing the state enterprise Srbijagas to generate losses. But, Skundric ended the interview on an optimistic note, voicing his believe that gas prices "will begin to seriously drop in the next three months", which "could in turn solve this public company's problems". Meanwhile, Belgrade daily Vecernje Novosti is writing today that Gazprom does not consider the Nov. 22 date for signing the NIS contract as crucial, but that it will not accept "endless postponements". The newspaper says that the Russians are insisting on a date set during the September visit of Russian Emergency Situations Minister Sergei Shoigu, and that they will not accept delays longer than five days. Skundric, left, interviewed by Beta (Beta)

Energy deal talks "go smoothly"

All the elements of the agreement have been ratified in parliament.

The minister, however, could not specify when the contracts to finalize the deal will be signed, and stressed that both sides wished to see this happen in a ceremony, when the inter-state economic committee meets in Moscow on Nov. 24.

"Whether we'll manage to agree on everything by that day, I cannot confirm. I think it is not important if the contracts are signed then, or a couple of days later, what is important is to reach an optimal result, acceptable for both sides," Škundrić said.

He added that the talks currently held are mostly dedicated to expert legal issues that must be defined in a way offering the most protection to both countries.

The minister also denied media reports that Belgrade is advocating a postponement of the NIS sale contract, set to be taken over by Gazpromneft, and said the NIS deal is a part of the package.

Škundrić could not specify what NIS assets will be sold to the Russians, since, as he put it, "the list is huge", and explained that it included refineries, gas stations, and other property.

Asked whether Gazpromneft will also gain the raw oil drilling concession rights NIS has in Angola, he said that this has not been determined to date, but that it will be discussed.

Škundrić also commented on the gas prices in Serbia to say that they are currently "RSD 34 per cubic meter on the border with Hungary", while as the gas arrives to the households, Serbians pay RSD 30.01.

All this, the minister explained, is pushing the state enterprise Srbijagas to generate losses.

But, Škundrić ended the interview on an optimistic note, voicing his believe that gas prices "will begin to seriously drop in the next three months", which "could in turn solve this public company's problems".

Meanwhile, Belgrade daily Večernje Novosti is writing today that Gazprom does not consider the Nov. 22 date for signing the NIS contract as crucial, but that it will not accept "endless postponements".

The newspaper says that the Russians are insisting on a date set during the September visit of Russian Emergency Situations Minister Sergei Shoigu, and that they will not accept delays longer than five days.