Koštunica adviser urges NIS privatization

Milan Parivodic says the state incurs huge losses because the Serbian Oil Industry (NIS) has not been privatized yet “Every year we sustain major losses because NIS is not restructured and privatized,” Prime Minister Vojislav Kostunica’s economy adviser said in an interview with Blic daily published Sunday. Kostunica adviser urges NIS privatization He added that these losses stand at between EUR 100mn and EUR 200mn each year. Stressing that the privatization of the state oil monopoly is vital for Serbia, Parivodic added there are "diverging views among cabinet ministers" regarding ways to carry out the privatization. “In my opinion, between 49 and 51 percent stake of NIS should go to a new owner. This portion is enough to attract serious partners. Smaller stakes are not appealing enough for major players in the global oil market,” said Parivodic, who was also the minister for international economic relations in the previous government.. According to him, it is of utmost importance to conduct the privatization as soon as possible, regardless of the stake offered at the tender. “Viable options are to sell the 25 percent share and a right to recapitalize the 37 percent of the remaining stock, or offer the majority package of 51 percent share,” he said. Milan Parivodic (FoNet, archive)

Koštunica adviser urges NIS privatization

He added that these losses stand at between EUR 100mn and EUR 200mn each year.

Stressing that the privatization of the state oil monopoly is vital for Serbia, Parivodić added there are "diverging views among cabinet ministers" regarding ways to carry out the privatization.

“In my opinion, between 49 and 51 percent stake of NIS should go to a new owner. This portion is enough to attract serious partners. Smaller stakes are not appealing enough for major players in the global oil market,” said Parivodić, who was also the minister for international economic relations in the previous government..

According to him, it is of utmost importance to conduct the privatization as soon as possible, regardless of the stake offered at the tender.

“Viable options are to sell the 25 percent share and a right to recapitalize the 37 percent of the remaining stock, or offer the majority package of 51 percent share,” he said.