GazpromNeft gas price and mining rent fees in Serbia within the dialogue of energy and mining ministers, is there a Pro-Russian and anti-Russian side?

25. January 2013. / News Serbia Energy

Although they both come from SNS, ministers Zorana Mihajlović and Milan Bacević had confronted attitudes about conditions of energy contract with Russia.

While Bacević thinks that mine rent increase can disrupt relations to Russia, Mihajlović insists that we should talk to Russian partners about fair compensation for the use of that resource.

Although he said that he belongs to the part of public that considers this compensation as low one, Bacević stressed that Serbia has to respect international contracts and it is “now is the worst possible moment to break up the agreement and change mine rent just because someone doesn’t like it”.

On the other hand, Minister of Energy stated that Serbia is interested to reconsider the price of mine rent that NIS pays with Russian partners, and said that we should take care of the rapidity oil discoveries are being exploited.

Chance to harmonize these sides will be construction of methodology which will determine profitability of NIS investment agreed on Russian-Serbian mixed Committee’s meeting where Bacević is co-president. These two ministers from familiar departments consider certain conditions of Russian agreement completely opposite.

Minister Mihajlović tried to avoid Company “Jugorosgas” as mediator in gas import and stated that Russian gas price is too high for Serbia.

Bacević as one of the reasons for mine rent remains the same alleged that its increase can worsen all conditions of “GaspromNeft” business. “GaspromNeft” is mayor owner of the NIS and it is in privileged position because of investing in NIS modernization.

Contradictory statements of two ministers

Zorana Mihajlović

15.01.2013 – “Gas price for Serbian market is extremely high, considering pretty good and friendly relations between Russia and Serbia”.

21.11.2012 -“Serbia wants to reconsider with Russian partners if mine rent for oil that Nis pays will be in accordance to the Mine Law i.e. higher than one company pays”.

21.11.2012 – “Rapidity of oil discovery exploitation is very important for Serbia. It is also important if oil discoveries are going to be dispended. Our interest is to research and keep our discoveries for all upcoming generations”.

Milan Bacević

03.01.2012 – “Oil and gas mine rent should not be changed because of its eventual increase can disrupt relations to Russian Federation”.

03.01.2013 – “Question of the mine rent paid by GaspromNeft in Serbia is very complicated because it has benefits in prices of Russian gas delivery and withdrawal contract of 3,6 to 7billion cubic meters of gas a year, without any penalty payment”.

28.08.2012- “It is a fact that announcements of financial help are serious, as well as concrete suggestions and projects that have arrive only from east so far. That doesn’t mean that they won’t come from other direction, but west probably still checks what kind of government this is”.

Source Serbia Energy Magazine

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