Post by Beach Police on Jan 25, 2008 10:54:00 GMT -5
MOSCOW, Russia (AP) -- Serbia has signed a multibillion-dollar deal that would make it a key hub for Russian energy supplies and strengthen Moscow's dominance of the European energy market.
Serbia President Boris Tadic, left, meets with Russia's Vladimir Putin at the Kremlin in Moscow.
The agreement includes building a branch of a prospective major natural gas pipeline and a huge gas storage facility in Serbia.
A separate agreement also lays the groundwork for Russia's state gas monopoly, OAO Gazprom, to acquire a controlling stake in Serbia's state oil company NIS.
"The agreements signed would make Serbia a key hub in the prospective network of Russian energy supplies to southern Europe," Russian President Vladimir Putin said after Friday's signing.
"This network will be long-lasting, reliable, highly efficient and -- what is very important -- help boost energy supplies to Serbia and the entire European continent."
The agreements, which Serbian officials have estimated as worth at least $2.2 billion, would include building a branch of the prospective South Stream natural gas pipeline in Serbia.
South Stream would run under the Black Sea from Russia to Bulgaria, from where it would branch off. The section through Serbia would carry at least 10 billion cubic meters a year, Gazprom CEO Alexei Miller said.
The 550-mile, $15 billion project undercuts the prospective United States and EU-backed Nabucco pipeline designed to ease Europe's reliance on Russia by carrying gas from the Middle East and Caspian countries other than Russia via Turkey.
Serbia President Boris Tadic said the deal would bolster his country's standing by making it a key transit country for energy supplies to Europe.
"This agreement has a huge strategic importance for Serbia," Tadic said. "It will strengthen Serbia's strategic positions in southeastern Europe, since it will serve as a transit point for gas supplies to the EU's southern flank."
Belgrade has turned increasingly away from the West and toward Russia, which has supported Serbia in the debate over independence for the province of Kosovo.
Tadic and Serbian Prime Minister Vojislav Kostunica both thanked Moscow for its support on Kosovo at the start of the talks with Putin.
"Serbia very deeply respects the position of Russia on Kosovo," Tadic said at the start Friday's talks with Putin. "We will defend our interests in Kosovo, operating on the basis of international law and we will never do otherwise."
Russia has used the rift to strengthen business and diplomatic ties to Serbia, with which Moscow has historic cultural and linguistic ties.
Serbia endorsed the energy deal after Putin won Bulgaria's support last week for the South Stream project.
The terms of the deal for Gazprom to acquire a 51 percent stake in Serbia's state oil company NIS were not announced.
But Serbia's Energy Minister Aleksandar Popovic has confirmed reports that Russia offered $600 million -- just one-fifth of the company's estimated market value -- and an additional $730 million in modernizing the run-down company.
Popovic said Tuesday that Serbia would try to better the price in further negotiations.
edition.cnn.com/2008/BUSINESS/01/25/russia.serbia.ap/index.html
Serbia President Boris Tadic, left, meets with Russia's Vladimir Putin at the Kremlin in Moscow.
The agreement includes building a branch of a prospective major natural gas pipeline and a huge gas storage facility in Serbia.
A separate agreement also lays the groundwork for Russia's state gas monopoly, OAO Gazprom, to acquire a controlling stake in Serbia's state oil company NIS.
"The agreements signed would make Serbia a key hub in the prospective network of Russian energy supplies to southern Europe," Russian President Vladimir Putin said after Friday's signing.
"This network will be long-lasting, reliable, highly efficient and -- what is very important -- help boost energy supplies to Serbia and the entire European continent."
The agreements, which Serbian officials have estimated as worth at least $2.2 billion, would include building a branch of the prospective South Stream natural gas pipeline in Serbia.
South Stream would run under the Black Sea from Russia to Bulgaria, from where it would branch off. The section through Serbia would carry at least 10 billion cubic meters a year, Gazprom CEO Alexei Miller said.
The 550-mile, $15 billion project undercuts the prospective United States and EU-backed Nabucco pipeline designed to ease Europe's reliance on Russia by carrying gas from the Middle East and Caspian countries other than Russia via Turkey.
Serbia President Boris Tadic said the deal would bolster his country's standing by making it a key transit country for energy supplies to Europe.
"This agreement has a huge strategic importance for Serbia," Tadic said. "It will strengthen Serbia's strategic positions in southeastern Europe, since it will serve as a transit point for gas supplies to the EU's southern flank."
Belgrade has turned increasingly away from the West and toward Russia, which has supported Serbia in the debate over independence for the province of Kosovo.
Tadic and Serbian Prime Minister Vojislav Kostunica both thanked Moscow for its support on Kosovo at the start of the talks with Putin.
"Serbia very deeply respects the position of Russia on Kosovo," Tadic said at the start Friday's talks with Putin. "We will defend our interests in Kosovo, operating on the basis of international law and we will never do otherwise."
Russia has used the rift to strengthen business and diplomatic ties to Serbia, with which Moscow has historic cultural and linguistic ties.
Serbia endorsed the energy deal after Putin won Bulgaria's support last week for the South Stream project.
The terms of the deal for Gazprom to acquire a 51 percent stake in Serbia's state oil company NIS were not announced.
But Serbia's Energy Minister Aleksandar Popovic has confirmed reports that Russia offered $600 million -- just one-fifth of the company's estimated market value -- and an additional $730 million in modernizing the run-down company.
Popovic said Tuesday that Serbia would try to better the price in further negotiations.
edition.cnn.com/2008/BUSINESS/01/25/russia.serbia.ap/index.html