Serbia Eyes Better Terms Under NIS Deal with Gazprom Neft

Serbia Eyes Better Terms Under NIS Deal with Gazprom Neft
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Δευ, 18 Αυγούστου 2014 - 10:36
Serbia would like to secure for itself better terms under the privatization deal for oil and gas firmNIS [BEL:NIIS] signed with Russia's Gazprom Neft, Belgrade-based media quoted prime minister Aleksandar Vucic as telling a news conference on Thursday.
Serbia would like to secure for itself better terms under the privatization deal for oil and gas firmNIS [BEL:NIIS] signed with Russia's Gazprom Neft, Belgrade-based media quoted prime minister Aleksandar Vucic as telling a news conference on Thursday.

In late 2008, Gazprom Neft signed a 400 million euro ($544 million) deal to acquire from the Serbian state a 51% stake in NIS. The Gazprom unit has since raised its stake to 56.15% with the government in Belgrade still controlling 29.9%.

On Monday, the Serbian government said the country's internal affairs ministry has formed a special investigation team to examine all facts and circumstances related to the privatization deal for the NIS stake.

Stressing that the intention is not to sour relations with Russia, Vucic still listed several issues the Serbian side is unhappy with like the profit-sharing and a lowly 3.0% mineral resource royalty fixed as part of the terms of the privatization deal for NIS, state-run news broadcaster RTS reported.

In June, NIS said it will pay out as dividend 13.08 billion dinars ($153 million/112.7 million euro) from last year's net profit of 52.3 billion dinars.

In a video file posted on the website of news outlet Tanjug, Vucic goes on to say at the same news conference the Serbian side also considers that the investments NIS is making into its fuel retailing business "are not sufficiently visible and [..] sufficiently clear."

NIS is one of the largest vertically integrated companies in Southeast Europe. Its main activities include the exploration, production and processing of oil and gas, as well as the production and retail of a wide range of petroleum products.

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