Russia Offers €1 bn for Serbia's NIS
26 December 2007 Belgrade _ The Russian government has offered Serbia €1 billion for a majority stake in the country's oil and gas monopoly, in exchange for the development of a part of the strategic Blue Stream gas pipeline, Belgrade’s Blic daily said Wednesday. Citing sources, Blic said the Russian government offered Serbia €500 million in cash and another €500 million in investments for the overhaul of Naftna Industrija Srbije's (NIS) ageing production and distribution facilities. Aleksandr Alekseyev, Russia's Ambassador to Serbia, recently handed over a draft agreement on the joint development of the pipeline to Serbia's Energy Minister, Aleksandar Popovic. Blic said talks over the pipeline are taking place through regular diplomatic channels. Earlier this year, Gazprom’s Chief Executive Alexey Miller met with Serbia’s President Boris Tadic and Prime Minister Vojislav Kostunica to discuss the deal. The Blue Stream pipeline will carry Russian natural gas brought in from ports in Turkey and Bulgaria to western Europe via Serbia.. Blue Stream will be designed to allow connections from smaller gas pipelines from Montenegro and Kosovo, according to reports. Last year, Belgrade and Moscow signed a letter of intent to develop the pipeline which is expected to cost €1.2 billion. According to initial estimates, Serbia is expected to pocket €200 million a year in transit fees, and will be able to offer a steady gas supply to some 400,000 households. Read more at http://www.balkaninsight.com/en/main/analysis/7101/
