Koštunica, Tadić, travel to Moscow for energy deal

The government yesterday approved a draft energy sector agreement with Russia. The document adopted yesterday foresees the sale of the Serbian Oil Industry (NIS) to Russian Gazpromneft, Beta news agency said. Kostunica, Tadic, travel to Moscow for energy deal Prime Minister Vojislav Kostunica said after the session that the agreement is just a framework, that negotiations will continue and will be followed by certain contracts. The agreement will serve as grounds for talks on closing a deal between the Serbian public gas company Srbijagas and Russian Gazprom Export on the construction of a gas pipeline and an underground gas storage facility in Banatski Dvor, as well as an agreement between the Serbian government and Gazpromneft on the sale and development of NIS, says a government news release. The Serbian government announced that a framework deal on energy cooperation between Serbia and Russia is to be signed in Moscow on Jan. 25, with Infrastructure Minister Velimir Ilic signing on behalf of Serbia. President Boris Tadic and Prime Minister Vojislav Kostunica will head for Moscow on Jan. 25, for the signing of an energy agreement between Serbia and Russia, sources have told Beta yesterday. Today, Russian Foreign Minister Sergei Lavrov confirmed that Tadic and Kostunica will also meet with Russian President Vladimir Putin. Kostunica told a news conference after the government session that the talks on a final agreement and all accompanying contracts will take months, and that the documents will be handed to the parliament for ratification. Gazpromneft on Jan. 22 said that the final arrangement on the purchase of a 51 percent stake in NIS has yet to be made with Serbia, i.e. that negotiations are still underway, but that the terms of the agreement have not been fully harmonized. The company's information service declined to reveal how much the Russian side is offering for a stake in NIS. Energy and Mining Minister Aleksandar Popovic, who together with Foreign Minister Vuk Jeremic will complete the Serbian delegation, said that the latest Russian offer is EUR 400mn for a 51 percent stake in NIS and EUR 500mn worth of investment in the company by 2012. Ministers from the G17 Plus party did not wish to voice their opinion on the draft energy agreement with Russia at the Jan. 22 government session, as they believe it can be improved. According to some Serbian ministers, the majority stake in NIS should not be sold for less than EUR 2bn. Kostunica also said that the draft energy agreement with Russia would give Serbia a regional and transit gas pipeline, while Popovic said that the pipeline's capacity will be far bigger than 10 billion cubic meters per year, adding that the value of the pipeline construction project is estimated at some EUR 1.5bn. The South Stream gas pipeline, a project worth EUR 10bn, is to transport Russian gas through Bulgaria and Central and Southern Europe, with Serbia likely to earn around USD 200mn annually from the transit fees. Kostunica and Tadic (FoNet)

Koštunica, Tadić, travel to Moscow for energy deal

Prime Minister Vojislav Koštunica said after the session that the agreement is just a framework, that negotiations will continue and will be followed by certain contracts.

The agreement will serve as grounds for talks on closing a deal between the Serbian public gas company Srbijagas and Russian Gazprom Export on the construction of a gas pipeline and an underground gas storage facility in Banatski Dvor, as well as an agreement between the Serbian government and Gazpromneft on the sale and development of NIS, says a government news release.

The Serbian government announced that a framework deal on energy cooperation between Serbia and Russia is to be signed in Moscow on Jan. 25, with Infrastructure Minister Velimir Ilić signing on behalf of Serbia.

President Boris Tadić and Prime Minister Vojislav Koštunica will head for Moscow on Jan. 25, for the signing of an energy agreement between Serbia and Russia, sources have told Beta yesterday.

Today, Russian Foreign Minister Sergei Lavrov confirmed that Tadić and Koštunica will also meet with Russian President Vladimir Putin.

Koštunica told a news conference after the government session that the talks on a final agreement and all accompanying contracts will take months, and that the documents will be handed to the parliament for ratification.

Gazpromneft on Jan. 22 said that the final arrangement on the purchase of a 51 percent stake in NIS has yet to be made with Serbia, i.e. that negotiations are still underway, but that the terms of the agreement have not been fully harmonized.

The company's information service declined to reveal how much the Russian side is offering for a stake in NIS.

Energy and Mining Minister Aleksandar Popović, who together with Foreign Minister Vuk Jeremić will complete the Serbian delegation, said that the latest Russian offer is EUR 400mn for a 51 percent stake in NIS and EUR 500mn worth of investment in the company by 2012.

Ministers from the G17 Plus party did not wish to voice their opinion on the draft energy agreement with Russia at the Jan. 22 government session, as they believe it can be improved.

According to some Serbian ministers, the majority stake in NIS should not be sold for less than EUR 2bn.

Koštunica also said that the draft energy agreement with Russia would give Serbia a regional and transit gas pipeline, while Popović said that the pipeline's capacity will be far bigger than 10 billion cubic meters per year, adding that the value of the pipeline construction project is estimated at some EUR 1.5bn.

The South Stream gas pipeline, a project worth EUR 10bn, is to transport Russian gas through Bulgaria and Central and Southern Europe, with Serbia likely to earn around USD 200mn annually from the transit fees.