Ilić: We exchanged NIS for gas pipeline

NIS’s sale price to the Russians was reduced by the value they will invest in the construction of a gas pipeline through Serbia, says NS leader Velimir Ilic. Explaining that Serbia had exchanged the Serbian Oil Industry (NIS) for the pipeline, the former infrastructure minister in Vojislav Kostunica’s government said in an interview published by Politika that he was very happy that he had signed the energy agreement with Russia. Ilic: We exchanged NIS for gas pipeline “Our experts have calculated the level of investment needed to construct the gas pipeline—EUR 2bn are needed in the first phase. We said that we did not have the funds for such an investment and the Russians then said ’all right, we will finance it and you can compensate us with a share of NIS’,” said Ilic, adding that the government working group had calculated that the difference the Russians should pay was EUR 400mn. “Economy Minister Mladjan Dinkic wants us to sell it at market price and to have the Russians finance the project with their own money because we are penniless,“ said the New Serbia (NS) leader. “No one will agree to that. Then no gas pipeline will run through Serbia. It will run through Romania and Hungary, as it has been requested by those two countries,” underlined Ilic. “Only Russia has gas in Europe, and it was 'take it or leave it’. Our experts calculated that the pipeline would bring Serbia an annual income of EUR 200mn, which is what Hungary now has from transit,“ he explained. Ilic wondered what was more important: “EUR 200mn per year profit over the next 20 years, or cash in everything now, and have nothing later? Moreover, we’re creating jobs for thousands of people on this whole project.“ “Why didn’t Dinkic, who gave his blessing to this project, not say ‘this contract’s no good, I won’t agree to it’?” the NS leader added. Pointing out that Dinkic’s signature was on the papers, he said that it annoyed him that “certain ministers, regardless of which government they’re in, write everything, agree on it, parliament ratifies it, everything’s wrapped up, and then individuals put themselves ahead of the state and it all begins to come tumbling down.“ Ilic did not wish to comment on his own party’s future relations with the Radicals and Tomislav Nikolic’s Serb Progressive Party. “Time will tell. Let’s let the Radicals sort out their problems and see what this new party is like, then we’ll see, we’ll weigh up their strengths and weaknesses,“ said the minister, wishing both parties success. Velimir Ilic (FoNet, archive)

Ilić: We exchanged NIS for gas pipeline

“Our experts have calculated the level of investment needed to construct the gas pipeline—EUR 2bn are needed in the first phase. We said that we did not have the funds for such an investment and the Russians then said ’all right, we will finance it and you can compensate us with a share of NIS’,” said Ilić, adding that the government working group had calculated that the difference the Russians should pay was EUR 400mn.

“Economy Minister Mlađan Dinkić wants us to sell it at market price and to have the Russians finance the project with their own money because we are penniless,“ said the New Serbia (NS) leader.

“No one will agree to that. Then no gas pipeline will run through Serbia. It will run through Romania and Hungary, as it has been requested by those two countries,” underlined Ilić.

“Only Russia has gas in Europe, and it was 'take it or leave it’. Our experts calculated that the pipeline would bring Serbia an annual income of EUR 200mn, which is what Hungary now has from transit,“ he explained.

Ilić wondered what was more important: “EUR 200mn per year profit over the next 20 years, or cash in everything now, and have nothing later? Moreover, we’re creating jobs for thousands of people on this whole project.“

“Why didn’t Dinkić, who gave his blessing to this project, not say ‘this contract’s no good, I won’t agree to it’?” the NS leader added.

Pointing out that Dinkić’s signature was on the papers, he said that it annoyed him that “certain ministers, regardless of which government they’re in, write everything, agree on it, parliament ratifies it, everything’s wrapped up, and then individuals put themselves ahead of the state and it all begins to come tumbling down.“

Ilić did not wish to comment on his own party’s future relations with the Radicals and Tomislav Nikolić’s Serb Progressive Party.

“Time will tell. Let’s let the Radicals sort out their problems and see what this new party is like, then we’ll see, we’ll weigh up their strengths and weaknesses,“ said the minister, wishing both parties success.