Republika Srpska: Legal framework and business model preparation for South Stream connection works

Published on 4. December 2013., SEE Energy News

The Acting Director of “Gas-Res” Slobodan Puhalac said that the adoption of a special law on the “South Stream” in the National Assembly of the Republic of Srpska will ensure the implementation of the project without delay. Puhalac said that we should follow what happened in Serbia in many ways in the process of realization of the project, pointing out that the key point of the project in Srpska will be establishment of a joint company “Gas-Resa” and “Gazprom”, which is expected early next year.

“We agreed that in new company will be 60 percent of ‘Gazprom’, and 40 percent of ‘Gas-Res’, or the Republic of Serbian” said Puhalac.

Speaking about the attitude of Sarajevo in connection with this project, Puhalac stressed that interest of BiH is that the project is implemented. He said that the “core” to support the project in Sarajevo will be created after visiting Bosnia and Herzegovina of high delegation of the Russian “Gazprom”.

“It is unrealistic to expect that someone is not linked to the mega-project which goes through its neighborhood,” said Puhalac.

The director of “Srbijagas” Dusan Bajatovic said that Serbia, which will be a key transit country of gas pipeline “South Stream”, according to the agreement on special parallel relations, has every right to maximally support Srpska in this project, and it does it.

According to him, before it was decided to build branch pipeline of smaller diameter towards Srpska, but the negotiations are working to increase that amount significantly.

“Signing of the intergovernmental agreement between the Republic of Srpska and Russia remained, to which you are entitled. Also the agreement on environmental issues remained to resolve and that the Federation must be respected completely,” said Bajatovic.

He reiterated that it is important that Srpska signs the intergovernmental agreement as soon as possible, because it “frees” the direction from Hungary, since offers will be better with more interconnections.

“Srpska as well as Serbia will have a full warranty from Russia and they should to take a full advantage of it. We have a well established co-operation. We provide logistical support to Gas-Res. The cooperation between the governments of Srpska and Serbia is good”, said Bajatovic.

He said that the Republic of Srpska may soon begin implementation of preliminary and final design, and that “Srbijagas” is ready to provide all necessary assistance free of charge.

Deputy Minister of Industry, Energy and Mines of the Republic of Srpska, Milan Bastinac, said that Srpska is grateful for the support of relevant ministry in Serbia, stressing also the excellent cooperation of “Gas-Res” and “Srbijagas”.

“Wr should not miss the opportunity that arose the Republic of Srpska to be a part of this mega-project,” said Bastinac.

Source; Serbia Energy See desk