Serbia: Srbijagas dept to Gazprom to be paid from state budget

, News Serbia Energy

Debts of Srbijagas to Gazprom owned oil company (NIS) of 23,4 billion dinnars (191MEUR) will be paid from the republic budget, as it was provided by the Law that the Government of Serbia sent to the Parliement for adoption.

As provided by the Proposal of the Law on taking over the obligation of Srbijagas to NIS and turning those obligations into public debt, the debt will be settled by 2018, and it is planned to settle 20% of the total debt by the end of this year.

It is stated in the explanation that due to the financial situation in Srbijagas, and its large credit exposure, insufficient payment for the gas that was delivered, insolvence of the economy and remote heating system, Srbijagas is not capable to provide financial means and settle the debts, without endangering the current gas supply and payment. That is why it is necessary that the founder, The Republic of Serbia, provides financial means to settle obligations to NIS.

Since from 2008-2013 Srbijagas operated in uneconomical conditions, and due to disparity of gas prices, insolvence of the economy and remote heating systems, and considering the recommendation that Srbijagas is to deliver gas to companies undergoing restructuring, there has been a delay in obligation settlement to NIS so Serbia and NIS concluded a Memorandum on regulating the claims of NIS to Srbijagas and HIP Petrohemija Pančevo.

The Memorandum provides the way to settle debts of Srbijagas to NIS that occured in the period from December 1, 2011 till March 31, 2013, transmits

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