Railway and infrastructure deals with Russia ratifiedSource: Tanjug
BELGRADE -- The Serbian parliament on Friday ratified two agreements between the governments of Russia and Serbia.
One concerns a loan for infrastructure and while the other regulates gas supply from the Russian Federation.
Russia approved a USD 800 million state export loan to the Serbian government for financing infrastructure projects and purchase of trains for Serbian Railways.
The loan will be used to finance 85 percent of the cost of every contract on delivery of goods, works and services in the railway sector in Serbia, signed between authorized Serbian and Russian companies, while the remaining 15 percent will be provided by Serbian importers in the form of an advance.
The Serbian side will use the loan over a period of five years, starting from the year it comes into effect.
The value of individual projects and deadlines for their implementation will be defined in additional contracts to be signed between Serbian and Russian companies.
The planned projects include the construction and electrification of a second track on the Belgrade-Pančevo railway route, construction of a single-track electric railway from Valjevo to Loznica, repairs on six segments of the railway line along Corridor 10, modernization of the Belgrade-Bar railway line and purchase of Russian diesel engine trains.
Under the agreement on supply of natural gas, Russia will deliver five billion cubic meters to Serbia every year between 2012 and 2021.
Considering current consumption of around 2.5 billion cubic meters a year, the agreement will ensure sufficient quantities of natural gas to satisfy future demand, says the Serbian government.