Serbia to raise "question of responsibility"

Srbijagas CEO Dusan Bajatovic says that Serbia has to raise the question of responsibility in the Russo-Ukrainian gas dispute. “We’ll ask for an explanation from Russian Yugosrosgas and Gazprom, and Ukrainian Naftogas, and we’ll raise the issue of responsibility where the explanations aren’t acceptable to us,” he told B92. Serbia to raise "question of responsibility" Bajatovic added that a lawsuit against Ukraine was already being planned, while no legal or economic grounds existed for a suit against Russia. “It’s not a political problem for us to sue Russia, rather legal and economic. On the other hand, there were gas supplies for Serbia at the Ukrainian-Hungarian border until just a few days ago. The Ukrainians simply turned off the taps,“ the Srbijagas CEO said. Asked how Serbia could sue Ukraine when the gas supply contract had been signed with Russian Yugorosgas, he said that the contract contained a clause on force majeur, which, he said, applied in this case. Bajatovic added that Hungary had done Serbia a great favor by supplying gas during the crisis, regardless of the fact that it would have to be paid for. Asked why Serbia received gas via the Ukrainian-Hungarian border, he replied that Hungary had a commercial interest in this, and that Serbia was attempting “the whole time“ to receive gas from its own borders. Talks are under way with Hungary and Germany to extend gas supplies beyond January 20. However, despite the fact that Europe has considerable gas reserves in its reservoirs, these supplies are not inexhaustible. Bajatovic said that Serbia would extend the contract, but that any new problems with gas supplies could cause a major headache. “We’ll extend the contract, no-one can guarantee this for the time being. I really must say that these contracts also contain a so-called suspension clause, which means that if there are any further problems, we really would find ourselves in a fix once again,“ said the Srbijagas CEO. “Therefore, we’re working on a new basis for added supplies. I truly hope that these will suffice if the crisis hasn’t been resolved by then,“ he said. Completion of the underground storage facility in Banatski Dvor would considerably reduce Serbia’s reliance on foreign factors in the long term, though a further USD 22mn is required to finish the job. “The government and I are doing all we can with the key people right now to resolve this crisis, and believe me, I’ll do everything in my power, I’ll lay my job as Srbijagas CEO on the line, to complete the Banatski Dvor reservoir this year,“ Bajatovic told B92. In the event of gas shortages, the Banatski Dvor is planned to have reserves sufficient for 10 days. Meanwhile, B92 understands that the Energy Ministry will submit a proposal to cut gas bills for consumers left without heating or gas at today’s cabinet meeting. B92 understands from the ministry that more detailed information will be released after the cabinet meeting.As there is seemingly no end in sight to the Russo-Ukrainian gas dispute, Serbia has agreed further deliveries of Hungarian and German gas until January 20. Bajatovic said that the volume of gas coming from these two countries remained at the same level, and that, combined with domestic output, it would be enough for thermo plants and homes. “Output remains at the level of a million cubic meters, which means that we should be able, at least until that period, to supply the necessary volume for remote heating in places where crude heating oil cannot be used as a substitute, as well as in homes,“ said Bajatovic. Dusan Bajatovic (Beta, archive)

Serbia to raise "question of responsibility"

Bajatović added that a lawsuit against Ukraine was already being planned, while no legal or economic grounds existed for a suit against Russia.

“It’s not a political problem for us to sue Russia, rather legal and economic. On the other hand, there were gas supplies for Serbia at the Ukrainian-Hungarian border until just a few days ago. The Ukrainians simply turned off the taps,“ the Srbijagas CEO said.

Asked how Serbia could sue Ukraine when the gas supply contract had been signed with Russian Yugorosgas, he said that the contract contained a clause on force majeur, which, he said, applied in this case.

Bajatović added that Hungary had done Serbia a great favor by supplying gas during the crisis, regardless of the fact that it would have to be paid for.

Asked why Serbia received gas via the Ukrainian-Hungarian border, he replied that Hungary had a commercial interest in this, and that Serbia was attempting “the whole time“ to receive gas from its own borders.

Talks are under way with Hungary and Germany to extend gas supplies beyond January 20.

However, despite the fact that Europe has considerable gas reserves in its reservoirs, these supplies are not inexhaustible.

Bajatović said that Serbia would extend the contract, but that any new problems with gas supplies could cause a major headache.

“We’ll extend the contract, no-one can guarantee this for the time being. I really must say that these contracts also contain a so-called suspension clause, which means that if there are any further problems, we really would find ourselves in a fix once again,“ said the Srbijagas CEO.

“Therefore, we’re working on a new basis for added supplies. I truly hope that these will suffice if the crisis hasn’t been resolved by then,“ he said.

Completion of the underground storage facility in Banatski Dvor would considerably reduce Serbia’s reliance on foreign factors in the long term, though a further USD 22mn is required to finish the job.

“The government and I are doing all we can with the key people right now to resolve this crisis, and believe me, I’ll do everything in my power, I’ll lay my job as Srbijagas CEO on the line, to complete the Banatski Dvor reservoir this year,“ Bajatović told B92.

In the event of gas shortages, the Banatski Dvor is planned to have reserves sufficient for 10 days.

Meanwhile, B92 understands that the Energy Ministry will submit a proposal to cut gas bills for consumers left without heating or gas at today’s cabinet meeting.

B92 understands from the ministry that more detailed information will be released after the cabinet meeting.As there is seemingly no end in sight to the Russo-Ukrainian gas dispute, Serbia has agreed further deliveries of Hungarian and German gas until January 20.

Bajatović said that the volume of gas coming from these two countries remained at the same level, and that, combined with domestic output, it would be enough for thermo plants and homes.

“Output remains at the level of a million cubic meters, which means that we should be able, at least until that period, to supply the necessary volume for remote heating in places where crude heating oil cannot be used as a substitute, as well as in homes,“ said Bajatović.