Initial Capital for South Stream Serbia is Not Provided from Government Guarantees

Prime Minister Ivica Dacic said today that he reached an agreement with Chairman of the Board of Directors of Gazprom Alexey Miller that the Russian side borrows €75 million for the initial capital for setting up South Stream Serbia.

Dacic told reporters after the conference "Business Conference - Serbia and the Diaspora” that, given the economic situation in Serbia and the need to reduce the overall level of indebtedness, it was agreed that the initial capital for South Stream Serbia is not provided from government guarantees, but charged from gas transfer fees.

He recalled that initially, the state was to provide guarantees for a loan of €75 million from commercial banks.

In a telephone conversation with Miller it was agreed that the said amount is not given from the government guarantee, but be returned through income from gas transfer fees, Dacic explained.

The state and Srbijagas will in January next year agree with Gazprom how to return the money, which is a type of loan.

Dacic also expressed gratitude to the Russian partners for understanding and said that the deal is important for the overall macro-economic stability in the country.

Dacic also said that the dialogue with Pristina will continue in January, but no official date has yet been set.

The next round of dialogue has not been scheduled yet; 17 January is mentioned more often than 19 January, he said adding that working groups will resume work on 9 January.

Dacic said that he expects that, besides new topics, the next round of talks will address those about which the agreement has already been reached.

The talks will deal with the formation of a community of Serb municipalities, judiciary, telecommunications, but also new topics that Belgrade has introduced, such as the issue of the property and position of the Serbian Orthodox Church, Dacic said.

(Balkans.com)