Parliament debating energy deal

Parliament has begun debating confirmation of the energy agreement with Russia signed in Moscow on January 25. The agreement envisages the construction of a major pipeline artery through Serbia, an underground gas reservoir in Banatski Dvor, and the modernization of the Serbian Oil Industry (NIS), for which Gazpromneft offered around EUR 900mn. Parliament debating energy deal The proposal is being outlined by Deputy Prime Minister Bozidar Djelic and Mining and Energy Minister Petar Skundric. Djelic called on all the parliamentary parties to vote in favor of the energy agreement with Russia as it was, as he put it, in Serbia’s national interests. The minister said that he was sending the appeal to MPs on behalf of the ruling coalition, stating that Skundric would outline the document after the recess. “By accepting this agreement, Serbia won’t be reducing either EU economic or ecological standards,“ he said, adding that “the agreement shouldn’t be idealized, but nor should its immense significance be underestimated.“ Djelic is sure that, as with the Stabilization and Association Agreement (SAA), the overwhelming majority of MPs will support the deal. Skundric said that the arrangement with Russia represented one of the most important strategic projects for the country in the next 30-50 years. Taking the floor in parliament, the minister said that by voting for the agreement, MPs would create conditions for the development of energy in Serbia, stressing that both citizens and the economy would hugely profit from it. Explaining in detail the main provisions of the agreement, he pointed out that one of the important advantages the document offered was that it ensured an uninterrupted supply of gas to a large number of consumers in Serbia. Gazpromneft’s offer is, according to the agreement, to participate in the joint construction of the South Stream pipeline through Serbia, to be the 51 percent majority owner of the pipeline, and to take part in the building of the underground reservoir in Banatski Dvor. The biggest controversy in the domestic media has been stirred by the Russians’ offer of EUR 400mn for a 51 percent stake in NIS, pledging a further EUR 500mn in investments by 2012. Domestic experts have estimated that the company’s bookkeeping value at around EUR 1.2bn, but that the market value could reach around EUR 3bn. In the meantime, the government has hired the Deloitte & Touche consulting house to conduct a valuation of NIS.

Parliament debating energy deal

The proposal is being outlined by Deputy Prime Minister Božidar Đelić and Mining and Energy Minister Petar Škundrić.

Đelić called on all the parliamentary parties to vote in favor of the energy agreement with Russia as it was, as he put it, in Serbia’s national interests.

The minister said that he was sending the appeal to MPs on behalf of the ruling coalition, stating that Škundrić would outline the document after the recess.

“By accepting this agreement, Serbia won’t be reducing either EU economic or ecological standards,“ he said, adding that “the agreement shouldn’t be idealized, but nor should its immense significance be underestimated.“

Đelić is sure that, as with the Stabilization and Association Agreement (SAA), the overwhelming majority of MPs will support the deal.

Škundrić said that the arrangement with Russia represented one of the most important strategic projects for the country in the next 30-50 years.

Taking the floor in parliament, the minister said that by voting for the agreement, MPs would create conditions for the development of energy in Serbia, stressing that both citizens and the economy would hugely profit from it.

Explaining in detail the main provisions of the agreement, he pointed out that one of the important advantages the document offered was that it ensured an uninterrupted supply of gas to a large number of consumers in Serbia.

Gazpromneft’s offer is, according to the agreement, to participate in the joint construction of the South Stream pipeline through Serbia, to be the 51 percent majority owner of the pipeline, and to take part in the building of the underground reservoir in Banatski Dvor.

The biggest controversy in the domestic media has been stirred by the Russians’ offer of EUR 400mn for a 51 percent stake in NIS, pledging a further EUR 500mn in investments by 2012.

Domestic experts have estimated that the company’s bookkeeping value at around EUR 1.2bn, but that the market value could reach around EUR 3bn.

In the meantime, the government has hired the Deloitte & Touche consulting house to conduct a valuation of NIS.