Serbia's cabinet of ministers has approved a controversial energy deal, including the sale of its state oil monopoly Naftna Industrija Srbija, or NIS, to OAO Gazprom Neft (SIBN.RS), the oil arm of OAO Gazprom (GAZP.RS), the Interfax news agency reported Monday.
The deal envisages Gazprom Neft would buy a majority stake in NIS for EUR400 million, and part of the South Stream gas pipeline would run through Serbia. It also includes the building of a major gas-storage facility in Serbia, making the country a key hub for Russian energy supplies to Europe.
On Jan. 25 a preliminary deal was signed. Serbia went to the polls at the weekend in a general election. It is now up to the new Serbian parliament, to make a final approval of the deal.