Govt. decides in favor of Russian energy deal

Give NIS to the Russians for 400 Million, even for less! But only if the pipeline runs through Serbia and get it in writing,.. No PIPELINE no deal! I am sure the Russians would accept it, Serbia must be firm.

If the pipeline goes through Serbia, the Former Yugoslav Republics who turn their back on Serbia and snub Russia in the next couple of months will wish they never did because getting Energy from anywhere else will be very costly, and even then their won't be enough of it to go around so much of the lower classes will suffer! Serbia on the other hand will have all the energy she needs should these pipelines run through her.

"Energy Observer’s website wrote that the government had until January 18 to decide on the offer.

This is an ULTIMATUM, 2 days before Pres. elections.
Why?
(doni, 29 December 2007 17:50) "

doni,

you are overreacting. It is standard commercial practice for formal offers to contain deadlines for acceptance before they lapse. And from a 2-3 week timeline does appear reasonable to me.

I also think just because the offer price is at a discount should not be necessarily contrued as Russia taking advantage of the Serbians. The price is just part of the package deal -- the so-called low price could be in consideration for some benefits elsewhere -- we have to see what the entire package is before screaming prematurly "unfair deal!".

So interesting to see non-Serbs so concerned for our oil industry.

To be blunt NIS is only worth about $800 million and not the $1.6 billion claimed by the minister. It is actually costing the government several million a year to keep it alive. The official price is not yet confirmed but I am sure its around $500-550 million, and thats for only 51% the other 49% still belonging to Serbia. If you can count, that is still a very significant share hold as we collect 49% of the profits. Plus the promised investment of another $500 million will really help modernize the company. The Russians will build the gas pipeline through Serbia because it serves their interests to do so. To add to that Serbia will collect $200 million annually through transit tax of the oil. Over all the deal is a pretty fair one for both sides.

Doni don't put trust in the EU, their so called capital "Brussels" is bracing for collapse what EU unity is there? Further Albania has a Loooonnngggg way to go before every seeing the EU, I am talking decades.

Do not put your eggs in one Russian basket. The Russians have shown their cards before with Ukraine and Belorussian turned off the energy supply. That is what will happen to Serbia also if they don't play ball to the Russians liking. What makes you think they will treat Serbia any better. They have their own national interest if it aligns with theirs they will yous Serbia its fine for them. If not you will be put out in the cold before you no what happened or why.

Verano Motors paid EUR 360mn to buy RK Beograd (Belgrade Department Stores)- B92

So, the russian are just offerin 400 for NIS, what a humiliation offer. No garanties that the pipeline will pass through serbia, market principles for setting up the prices, and they want the deal immidiately, with no environtmental laws applied 2012 and many other disadvantages for serbia.
So, where is the advantage here for serbia? as long as you pay same market prices for gas, everyone will be supplied with gas, and garanted. They did to ukraine, to belrussia, and other EX republics, so why not to serbia? acctually they are doing to you now.
But the key point is why they what it so cheap, and why immediately?
Maybe if serbia will not give them an answer now, and they want it now, they may reconsider the position on Kosova, till now they have hindered that EU mission is not immposible. This is just a safety measure from russia to make sure that serbia will not be clever than them.
Because they know that they need the signature now.
I think the formula is simple for everyone to understand: only UNITY makes you STRONG. and the choice is clear only EU will make us strong.

Canadian: Your idea is wishful thinking. Russia offered the Croatians even better deal of pipelines for natural gas oil threw Hungary to the ports in Croatia and on to western Europe. Spin off deals of 100s millions a year without insulting the Croatians. Or demanding next to nothing for INA their national energy Co. The Russians are having the Croatians build 10 double hall super tankers for them with no strings attached. Croatians rejected it instead they are building malty billion super energy port on the island of Krk for them selfs and central Europe with the central Europeans investing heavily in it also. Serbia or Russia will not be holding the central Europeans hostages but Serbia may be Russians. When the Russians turned off the supplies to Ukrainians every one was affected down stream had to use their reserves. So the Russians have used up their good will and trust.

Lenard, the Russians may have used up their goodwill and trust but they sure as hell haven't used up their oil or gas! They have huge reserves.

john: That is true they have large reserves. But the central Europeans want a release valve and not to be held hostage somewhere down the line in a geo political games as some Serbs advocate. That is why they are building with the Croatians the super energy port with huge storage capacity their and in some of the participating countries. They will get most of their supply from north Africa and Iran. Also to A92 comment that Serbia will be getting 200 million a year transit fee it will be 20 to 25 million EU currency unless his talking of Serbian dinars or just maybe some more wishful thinking.

Energy Observer’s website wrote that the government had until January 18 to decide on the offer.

This is an ULTIMATUM, 2 days before Pres. elections.
Why?

Verano Motors paid EUR 360mn to buy RK Beograd (Belgrade Department Stores)- B92

So, the russian are just offerin 400 for NIS, what a humiliation offer. No garanties that the pipeline will pass through serbia, market principles for setting up the prices, and they want the deal immidiately, with no environtmental laws applied 2012 and many other disadvantages for serbia.
So, where is the advantage here for serbia? as long as you pay same market prices for gas, everyone will be supplied with gas, and garanted. They did to ukraine, to belrussia, and other EX republics, so why not to serbia? acctually they are doing to you now.
But the key point is why they what it so cheap, and why immediately?
Maybe if serbia will not give them an answer now, and they want it now, they may reconsider the position on Kosova, till now they have hindered that EU mission is not immposible. This is just a safety measure from russia to make sure that serbia will not be clever than them.
Because they know that they need the signature now.
I think the formula is simple for everyone to understand: only UNITY makes you STRONG. and the choice is clear only EU will make us strong.

Do not put your eggs in one Russian basket. The Russians have shown their cards before with Ukraine and Belorussian turned off the energy supply. That is what will happen to Serbia also if they don't play ball to the Russians liking. What makes you think they will treat Serbia any better. They have their own national interest if it aligns with theirs they will yous Serbia its fine for them. If not you will be put out in the cold before you no what happened or why.

Energy Observer’s website wrote that the government had until January 18 to decide on the offer.

This is an ULTIMATUM, 2 days before Pres. elections.
Why?

Canadian: Your idea is wishful thinking. Russia offered the Croatians even better deal of pipelines for natural gas oil threw Hungary to the ports in Croatia and on to western Europe. Spin off deals of 100s millions a year without insulting the Croatians. Or demanding next to nothing for INA their national energy Co. The Russians are having the Croatians build 10 double hall super tankers for them with no strings attached. Croatians rejected it instead they are building malty billion super energy port on the island of Krk for them selfs and central Europe with the central Europeans investing heavily in it also. Serbia or Russia will not be holding the central Europeans hostages but Serbia may be Russians. When the Russians turned off the supplies to Ukrainians every one was affected down stream had to use their reserves. So the Russians have used up their good will and trust.

Give NIS to the Russians for 400 Million, even for less! But only if the pipeline runs through Serbia and get it in writing,.. No PIPELINE no deal! I am sure the Russians would accept it, Serbia must be firm.

If the pipeline goes through Serbia, the Former Yugoslav Republics who turn their back on Serbia and snub Russia in the next couple of months will wish they never did because getting Energy from anywhere else will be very costly, and even then their won't be enough of it to go around so much of the lower classes will suffer! Serbia on the other hand will have all the energy she needs should these pipelines run through her.

So interesting to see non-Serbs so concerned for our oil industry.

To be blunt NIS is only worth about $800 million and not the $1.6 billion claimed by the minister. It is actually costing the government several million a year to keep it alive. The official price is not yet confirmed but I am sure its around $500-550 million, and thats for only 51% the other 49% still belonging to Serbia. If you can count, that is still a very significant share hold as we collect 49% of the profits. Plus the promised investment of another $500 million will really help modernize the company. The Russians will build the gas pipeline through Serbia because it serves their interests to do so. To add to that Serbia will collect $200 million annually through transit tax of the oil. Over all the deal is a pretty fair one for both sides.

Doni don't put trust in the EU, their so called capital "Brussels" is bracing for collapse what EU unity is there? Further Albania has a Loooonnngggg way to go before every seeing the EU, I am talking decades.

"Energy Observer’s website wrote that the government had until January 18 to decide on the offer.

This is an ULTIMATUM, 2 days before Pres. elections.
Why?
(doni, 29 December 2007 17:50) "

doni,

you are overreacting. It is standard commercial practice for formal offers to contain deadlines for acceptance before they lapse. And from a 2-3 week timeline does appear reasonable to me.

I also think just because the offer price is at a discount should not be necessarily contrued as Russia taking advantage of the Serbians. The price is just part of the package deal -- the so-called low price could be in consideration for some benefits elsewhere -- we have to see what the entire package is before screaming prematurly "unfair deal!".

Lenard, the Russians may have used up their goodwill and trust but they sure as hell haven't used up their oil or gas! They have huge reserves.

john: That is true they have large reserves. But the central Europeans want a release valve and not to be held hostage somewhere down the line in a geo political games as some Serbs advocate. That is why they are building with the Croatians the super energy port with huge storage capacity their and in some of the participating countries. They will get most of their supply from north Africa and Iran. Also to A92 comment that Serbia will be getting 200 million a year transit fee it will be 20 to 25 million EU currency unless his talking of Serbian dinars or just maybe some more wishful thinking.