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Friday, 05 December, 2008, 16:20 GMT | more >>

Serbia styles itself as Balkans energy hub



By Upstream staff 

Serbia is hoping to attract €3 billion ($4.06 billion) of investment into the energy sector over the next four years, with the aim of becoming an energy hub in the Balkans, the country's new Prime Minister Vojislav Kostunica said.

Presenting the programme of his coalition government, Prime Minister Vojislav Kostunica singled out big energy projects as a top priority.

"The main foreign investment is expected to come in the energy sector," Reuters quoted Kostunica as saying.

"The government plans to ensure at least €3 billion over the next three years, especially in the gas and oil sectors. The government will build a 400-kilometre gas pipeline, worth around €1 billion," he added.

He also pledged to press ahead with the privatisation of oil monopoly NIS, saying the government will "complete the staged privatisation, ensuring NIS' value rises several times."

The sell-off, scheduled for lasst year, was postponed as Serbia went into early elections in January, and over three months of coalition talks. A government was agreed on Friday under European Union pressure, and sworn in late last night.

A proposal by advisers Merrill Lynch and Raiffeisen sees a phased sale, with 25% of the company sold initially and more parcels offered later on fulfilment of certain conditions.

The price tag for the 25% stake was to be $300 million, based on NIS' $1.2 billion nominal total value.

Serbia, along with Slovenia, Italy, Serbia, Croatia and Romania have signed a deal to build a 1400 kilometre pipeline connecting Constanta in Romania with Trieste in Italy, supplying refineries in Italy and central Europe with crude from the Caspian Sea.

Kostunica said he saw the natural gas sector as the most attractive for investors especially after a memorandum between the Serbijagas monopoly and Russian gas giant Gazprom on a study for a pipeline going from Bulgaria, through Serbia and Croatia, to Italy.

Serbia's segment would ultimately be linked to the Blue Stream pipeline running from Russia to Turkey under the Black Sea.


Wednesday, 16 May, 2007, 13:03 GMT  | last updated: Wednesday, 16 May, 2007, 13:15 GMT

Unveiling his plan: Vojislav Kostunica
 

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