PM: Energy deal to be signed tomorrow

Prime Minister Mirko Cvetkovic has confirmed to B92 that the Russian-Serbian energy contract will be signed in Moscow tomorrow. Cvetkovic told B92 that Serbia had received political guarantees for the implementation of the agreement for the construction of the South Stream pipeline and the underground reservoir at Banatski Dvor. PM: Energy deal to be signed tomorrow The sale of the Serbian Oil Industry is one of the integral elements of the deal. The sale price of EUR 400mn remains as before, and it has been agreed that construction of South Stream will be complete by the end of 2015. The minister said that it had been agreed that Serbia would receive the financial and legal guarantees within two years, and that, for now, it had political guarantees that the two agreements would be implemented. “We’ll see whether it will happen in two years’ time,“ he said, stressing that Serbia now had political guarantees from both Russian President Dmitry Medvedev and Prime Minister Vladimir Putin. Cvetkovic said that throughout the negotiations, the Serbian side had insisted on the deal coming as a package including the three elements, for which it had sought financial and legal guarantees, but that “now we’re no longer certain about this.“ The minister said that it was necessary to gage whether Serbian interests had been safeguarded on the basis of the results of the agreement signed so far. “I think we’ve achieved a very good agreement for Serbia, and I presume the other side thinks so too for itself, but our negotiating team has managed to make headway on almost all the critical elements,“ the minister underlined. He said that there had been no point or sense in Serbian negotiators broaching basic elements concerning the environment and jobs during the course of the talks, as these matters were still under discussion. “It now turns out that it was very handy that all this came out, as we can now see what a big stride the negotiating team was able to take in the talks, as everything that was up in the air 15-20 days ago, has now been agreed on,“ said Cvetkovic, adding that issues like the investment dynamic, NIS's monopoly, ecological standards and the pension plan had all been resolved. The agreement will be signed tomorrow in Moscow, with Serbian and Russian Presidents Boris Tadic and Dmitry Medvedev in attendance. During the talks on the sale of NIS to Gazprom, the Serbian side was able to secure more favorable conditions, reports the Russian Itar Tass agency. It is stated that the investment in NIS will be increased from EUR 500mn to 550mn,and that the Russians will be unable to rely on a monopoly on oil production until 2014, as they had wanted, but only until the end of 2010. According to Itar Tass, Gazprom will also be bound under the agreement to retain all staff at NIS until 2012, and that workers choosing to leave the company will receive EUR 750 for every year worked. Some of this information was confirmed by Serbian negotiating team member Dusan Bajatovic. “What I can say right now is that the investment will be no less that EUR 550mn. So, in line with the proposal accepted by the Russians on the basis of the Serbian proposal, we’ll have a satisfactory level of investment,“ said Bajatovic. “As far as a monopoly is concerned, after 2010, there won’t be a monopoly. That is envisioned by the clause that currently governs this. Ecological standards will be observed in line with Serbian law,“ he said. Mirko Cvetkovic (FoNet, archive)

PM: Energy deal to be signed tomorrow

The sale of the Serbian Oil Industry is one of the integral elements of the deal. The sale price of EUR 400mn remains as before, and it has been agreed that construction of South Stream will be complete by the end of 2015.

The minister said that it had been agreed that Serbia would receive the financial and legal guarantees within two years, and that, for now, it had political guarantees that the two agreements would be implemented.

“We’ll see whether it will happen in two years’ time,“ he said, stressing that Serbia now had political guarantees from both Russian President Dmitry Medvedev and Prime Minister Vladimir Putin.

Cvetković said that throughout the negotiations, the Serbian side had insisted on the deal coming as a package including the three elements, for which it had sought financial and legal guarantees, but that “now we’re no longer certain about this.“

The minister said that it was necessary to gage whether Serbian interests had been safeguarded on the basis of the results of the agreement signed so far. “I think we’ve achieved a very good agreement for Serbia, and I presume the other side thinks so too for itself, but our negotiating team has managed to make headway on almost all the critical elements,“ the minister underlined.

He said that there had been no point or sense in Serbian negotiators broaching basic elements concerning the environment and jobs during the course of the talks, as these matters were still under discussion.

“It now turns out that it was very handy that all this came out, as we can now see what a big stride the negotiating team was able to take in the talks, as everything that was up in the air 15-20 days ago, has now been agreed on,“ said Cvetković, adding that issues like the investment dynamic, NIS's monopoly, ecological standards and the pension plan had all been resolved.

The agreement will be signed tomorrow in Moscow, with Serbian and Russian Presidents Boris Tadić and Dmitry Medvedev in attendance.

During the talks on the sale of NIS to Gazprom, the Serbian side was able to secure more favorable conditions, reports the Russian Itar Tass agency.

It is stated that the investment in NIS will be increased from EUR 500mn to 550mn,and that the Russians will be unable to rely on a monopoly on oil production until 2014, as they had wanted, but only until the end of 2010. According to Itar Tass, Gazprom will also be bound under the agreement to retain all staff at NIS until 2012, and that workers choosing to leave the company will receive EUR 750 for every year worked.

Some of this information was confirmed by Serbian negotiating team member Dušan Bajatović.

“What I can say right now is that the investment will be no less that EUR 550mn. So, in line with the proposal accepted by the Russians on the basis of the Serbian proposal, we’ll have a satisfactory level of investment,“ said Bajatović.

“As far as a monopoly is concerned, after 2010, there won’t be a monopoly. That is envisioned by the clause that currently governs this. Ecological standards will be observed in line with Serbian law,“ he said.