Russia offering EUR 1bn for NIS

The Russian government has offered Serbia EUR 1bn for a majority stake in Serbian oil monopoly NIS. The draft agreement offers Serbia to help build a section of the South Stream pipeline and a strategic partnership in constructing an underground gas reservoir in Banatski Dvor, writes daily Blic. Russia offering EUR 1bn for NIS “The Russians have offered a ‘500 plus 500’ packet. This means that half a billion euros will be paid in cash and the other half will be invested in NIS,” a source close to the Serbian government told the daily. The sources said that in return, the Serbian government would give Russia a majority stake in the company without the announcement of a tender for its sale. The Russian offer includes the South Stream pipeline deal, which would supply Serbia with natural gas and secure money from transiting gas taxes, which would be split 50-50 between Serbia and Russia. The pipeline would have a capacity of ten million cubic meters of gas per day, which is enough to supply Serbia, and experts believe that NIS would pay less for oil, have better payment plans and more secure supplies. The work group for cooperation between Serbia and Russia in the oil and natural gas field, which is headed by Prime Minister Vojislav Kostunica, met yesterday to discuss the Russian offer, though the Energy Ministry did not want to state whether any agreements were reached. President Boris Tadic and Deputy Prime Minister Bozidar Djelic reportedly approve of the Russian proposal, while Energy Minister Aleksandar Popovic believes that the proposal is more than acceptable. However, Economy Minister Mladjan Dinkic said that NIS is worth about EUR 2bn and that it should not be a part of a bilateral agreement between two countries. If the agreement is signed, Russia would take over the Serbian market, but if the agreement is not signed, Russia, which supplies Serbia with gas, could increase prices and ask for a swift payment of the debt which Serbia owes to Russia, already worth several hundred million dollars, Blic writes.

Russia offering EUR 1bn for NIS

“The Russians have offered a ‘500 plus 500’ packet. This means that half a billion euros will be paid in cash and the other half will be invested in NIS,” a source close to the Serbian government told the daily.

The sources said that in return, the Serbian government would give Russia a majority stake in the company without the announcement of a tender for its sale.

The Russian offer includes the South Stream pipeline deal, which would supply Serbia with natural gas and secure money from transiting gas taxes, which would be split 50-50 between Serbia and Russia.

The pipeline would have a capacity of ten million cubic meters of gas per day, which is enough to supply Serbia, and experts believe that NIS would pay less for oil, have better payment plans and more secure supplies.

The work group for cooperation between Serbia and Russia in the oil and natural gas field, which is headed by Prime Minister Vojislav Koštunica, met yesterday to discuss the Russian offer, though the Energy Ministry did not want to state whether any agreements were reached.

President Boris Tadić and Deputy Prime Minister Božidar Đelić reportedly approve of the Russian proposal, while Energy Minister Aleksandar Popović believes that the proposal is more than acceptable.

However, Economy Minister Mlađan Dinkić said that NIS is worth about EUR 2bn and that it should not be a part of a bilateral agreement between two countries.

If the agreement is signed, Russia would take over the Serbian market, but if the agreement is not signed, Russia, which supplies Serbia with gas, could increase prices and ask for a swift payment of the debt which Serbia owes to Russia, already worth several hundred million dollars, Blic writes.