Energy minister briefs Industry Committee

Energy Minister Petar Skundric has told the Parliamentary Industry Committee today that a 51% stake in NIS would be sold under the energy deal with Russia. Skundric said that the Russian side had agreed to assume the Serbian Oil Industry’s losses dating back to December 31, 2007. Energy minister briefs Industry Committee Speaker Slavica Djukic-Dejanovic called the meeting of the Industry Committee at the insistence of Liberal Democratic Party (LDP) MPs, who wanted Skundric to outline the provisions of the gas agreement between Serbia and Russia that is due to be signed by the end of the year. The minister stressed that the a “high level of agreement has been reached with the Russians on the construction of South Stream and Banatski Dvor, and that more time is needed to hammer out the details of the 51 percent stake in NIS.” The Russian side has undertaken to complete a feasibility study for the South Stream project by the third quarter of 2009 and the whole project should be finished by 2015, said the minister. “It has been agreed that talks should finish by December 20,” he said, adding that “that agreement is one of the best strategic and developmental projects in Serbia.” Skundric said that the Russians had offered EUR 500mn for NIS’s reconstruction and modernization and “if it’s carried out according to NIS’s plan, it will be worth twice as much.“ According to earlier estimates, NIS’s debts at the end of last year were worth around USD 250mn. The minister said that the Russians believed that NIS’s share price should be formed on the stock exchange “while we asked for a specific price for the 19 percent of NIS shares owned by the Serbian tax payer.“ Petar Skundric at today's meeting (FoNet)

Energy minister briefs Industry Committee

Speaker Slavica Đukić-Dejanović called the meeting of the Industry Committee at the insistence of Liberal Democratic Party (LDP) MPs, who wanted Škundrić to outline the provisions of the gas agreement between Serbia and Russia that is due to be signed by the end of the year.

The minister stressed that the a “high level of agreement has been reached with the Russians on the construction of South Stream and Banatski Dvor, and that more time is needed to hammer out the details of the 51 percent stake in NIS.”

The Russian side has undertaken to complete a feasibility study for the South Stream project by the third quarter of 2009 and the whole project should be finished by 2015, said the minister.

“It has been agreed that talks should finish by December 20,” he said, adding that “that agreement is one of the best strategic and developmental projects in Serbia.”

Skundrić said that the Russians had offered EUR 500mn for NIS’s reconstruction and modernization and “if it’s carried out according to NIS’s plan, it will be worth twice as much.“

According to earlier estimates, NIS’s debts at the end of last year were worth around USD 250mn.

The minister said that the Russians believed that NIS’s share price should be formed on the stock exchange “while we asked for a specific price for the 19 percent of NIS shares owned by the Serbian tax payer.“