Serbia: The best conditions for South Stream to Serbia

17. July 2014. / News Serbia Energy

Serbia has received perhaps the best contract conditions for the South Stream construction, said Prime Minister Aleksandar Vucic, adding that Russia assumed the entire risk.

Vucic said that Serbia was among the last countries that signed the treaty, adding that he expressed gratitude to the Russian side because “I think we might have better conditions than any other country”.

When asked what kind of reaction is expected from Brussels on the occasion of the contract signing, he said: “Normal, the most normal”.

“As I say in Brussels that we are for EU and we will not impose sanctions to Russia, I also say here that we do not have two policies, we are proud of our policy. The most people of Serbia intercede for such a policy. And we lead such a clear policy”, said the Prime Minister that has met with Russian President Vladimir Putin earlier today in Moscow.

The contract guarantees the energy security of our country and citizens, Vucic said, noting that is a great investment activity.

“We will employ our capacities and our companies will earn at least 350 MEUR. If we are not dependent whether Ukraine will let us stream or not depending on political relations”, said Vucic.

The Prime Minister pointed out that Moscow doors would be economically open to us.

“I gave it all and we were fighting for Serbia and its interests. I think we accomplished a lot. Could it be more, maybe someone else did, I did not”, Vucic said when asked whether at the end of his visit to Moscow could be achieved more.

Commenting on the question whether there is an obstacle for the South Stream construction through Serbia, Vucic said for RTS that it depended on the Russians and the Europeans and their relationship, not of us.

“What the people of Serbia should know is that we are not exposed to any risk. We give 19 MEUR, Russians 2.1 Billion EUR. And in the case all to be done and one not to allow the pipeline operation, there is no harm for us, because we will earn more on the construction work”, he said.

He stated that we were able to change the payment method and the interest rate would remain 4.25 percent.
Miller: Signed contract for construction of compressor stations
The head of Gazprom Alexei Miller said that Moscow and Belgrade signed a contract to build a linear section of the pipeline and compressor unit on a “turnkey”. As the agency Itar-tas estimates, Russia and Serbia have entered into a new realization phase of the South Stream gas pipeline project.

Earlier today Gazprom announced that the company South Stream has concluded a contract with the company Centrogas on the South Stream gas pipeline construction on the territory of Serbia. It is an investment-constructional holding that operates within Gazprom, transmits Itar-tas.

Centrogas will be occupied with the design, the equipment and materials supply, construction and installation, workers training and commissioning of South Stream in Serbia.

By the contract conditions it is provided the implementation of certain activities to be included in subcontracting Serbian companies. In the tender, announced in March 2014th, took part four bidders, companies from Russia and Serbia, said Itar-tas, without specifying which were.

At the same time, as it was outlined in the materials that Kremlin prepared for today’s meeting of Putin and Vucic, Serbia could become a regional energy hub in the realization of the South Stream project, reports Itar-tas.

As it was noted, the territory of Serbia will have two branches – in Republika Srpska and Croatia, and it is discussed the possibility of separating the branches of Macedonia instead of construct it on the territory of Bulgaria.

“The leadership of Serbia supported the idea, in an effort to provide to the state the status of a regional energy node”, according to the materials.

The document also points out that “deals with the issue of bringing the pipeline of an administrative line between Serbia and Kosovo with construction of a parallel consumer networks in Kosovo based on long-term contracts on the Russian natural gas delivery”.

Download as PDF :

Download PDF