Serbia, The story of Jugorosgas, company that mediates in the supply of gas with Russia, News Serbia Energy
Although far from the eyes of the public, the company “Jugorosgas” has been working for years as an intermediary in the supply of gas between our country and Russia, which indirectly raises the price of gas supply, and thus the costs of our country, writes nova.rs.
It is an exception in the business world because it is not a practice for Russia to own a controlling stake, which is the case with Serbia. Distortion of competition, ownership instead of a minority partner and a contract until 2030 are the key things you need to know about the company founded in 1996.
“Jugorosgas” was founded during the inviolable rule of the SPS in 1996, and the main purpose was the construction of gas pipeline systems, transport and trade of natural gas. Initially, it was based on the partnership between Moscow and Belgrade, but the Russian side soon acquired a majority package of shares, while the PE “Srbijagas” remained with only 25 percent control over the company.
Energy expert Miodrag Kapor told nova.rs that the company “Jugorosgas” was a mediator in the supply of gas from Russia to Serbia during the 1990s, but that we are the only ones who do not have a controlling stake.
“For a while, our country directly procured gas from Russia, but in the middle of the 1990s, the mentioned company got involved in the business, which gave us an intermediary in the business.” “Other European countries are also doing that work through ‘daughter companies’, but what sets our country apart is that Serbia handed over the majority package of Jugorosgas,” says Kapor.
He notes that Serbia and Russia had a partnership, ie the share in ownership was 50:50 percent.
“From that moment on, Russia becomes the majority owner, but that’s not all. By all logic, Jugorosgas continues to be an intermediary in gas transport, ie to negotiate with Srbijagas. According to limited information coming to the public, they, as an intermediary, receive a margin of four percent for the gas transport business. That is a relatively large income “, Kapor points out, among other things for nova.rs.
Since Serbia is a member of the European Energy Community, our country is obliged to respect the agreements, but Kapor adds for Nova that we often violate them, Danas reports.