17-07-08 Serbia is set to review a deal to sell Russia a stake in its national oil company, including pricing, almost six months after it was signed, the economics minister of the Balkan country told.
A protocol on the sale of a 51 % stake in Naftna Industrija Srbije (NIS) to Gazprom Neft, the oil arm of Russian energy giant Gazprom, for EUR 400 mm ($ 648 mm) and investment in the modernization of the company’s facilities worth at least EUR 500 mm ($ 788 mm) was signed in Moscow on January 25.

Mladjan Dinkic, who also holds the position of a deputy prime minister, warned Serbian negotiators would put the country’s interests first and show “no indulgence” considering all market factors before making any decision. He said the negotiations would focus on protecting the environment and the price offered by Gazprom for the state-owned NIS assets.
“We will try to do all we can in Serbia’s interests,” the economics minister said.

Dinkic was appointed head of a working group to review the company’s price. The group also includes Finance Minister Diana Dragutinovic, Foreign Minister Vuk Jeremic, Energy Minister Petar Skundic and a number of experts.
PM Mirco Cvetkovic said the government had submitted the agreement to parliament for ratification without the protocol, which includes the original price for the 51 % stake.

Gazprom voiced its position in Belgrade earlier. Dmitry Malyshev, an aide to the CEO of Gazprom Neft, told that delays in ratifying the deal were delaying the NIS modernization and unbeneficial for Serbia. He added Gazprom Neft had no plans to increase the contracted sum, recalling that the NIS stake had been valued by both Russian and independent experts.
Russia and Serbia are also bound by an agreement on the South Stream gas pipeline, under which a 400-km (248 mile) leg will be built in Serbia for Russian natural gas transits and supplies to the Balkans.