Posted on 01/25/2008 3:18:57 AM PST by kronos77
MOSCOW, Jan 25 (Reuters) - Serbian leaders were to sign a big energy deal with Russia on Friday, giving Moscow control of the Serbian oil monopoly and the right to route a major European gas pipeline through Serbian territory.
The deal, which has sparked fears in the West that Serbia is mortgaging its energy future to the Kremlin, was to be inked nine days ahead of a runoff presidential contest in Serbia between a pro-Western and a pro-Moscow candidate.
Russian President Vladimir Putin has offered Belgrade strong support in its campaign to oppose independence for the Serbian province of Kosovo, a factor which analysts say has influenced Serbia's decision to tie its energy future to Russia.
"Serbia respects Russia's position on Kosovo. Without this, Serbia would find it far more difficult to defend its position on Kosovo," Serbian president Boris Tadic told reporters as he started talks with Putin at the Kremlin.
Friday's agreements will give Russian gas monopoly Gazprom a 51 percent stake in NIS, the Serbian oil and gas company, for an undisclosed price. Gazprom's initial offer of 400 million euros ($586.1 million) last month was described by analysts as well below market value but it was not immediately clear whether this had been raised.
NIS, the only state-owned oil firm in the Balkans to have escaped major restructuring or sale, dominates Serbia's market with a monopoly on refining and a network of almost 500 petrol stations all over the country.
Estimates of its value vary between 1.0 billion euros ($1.47 billion) and 2.0 billion euros ($2.94 billion).
Tadic and Serbia's Russophile Prime Minister Vojislav Kostunica were also expected to sign an agreement in Moscow for Gazprom to route its South Stream gas pipeline through Serbia.
South Stream is a major gas transit project bringing Siberian gas to southern Europe.
The European Union, worried about its heavy dependence on Russian gas, has been promoting a rival scheme which would take gas from Central Asia through Turkey to Europe but has been having trouble finding enough gas supply to justify the project. (Reporting by Oleg Shechrov; Writing by Michael Stott; Editing by Caroline Drees)
Serbian victory for Putin and Russia Inc
http://www.ft.com/cms/s/0/a78fc2a4-cadb-11dc-a960-000077b07658.html
Bulgaria, Serbia deals boost Russia’s gas plans for Europe
http://www.eubusiness.com/news-eu/1201140122.16
I hope the Serbian people are not getting hosed by a backroom deal that lines pockets but robs the country.
Bulgaria opted for same arrangement plus $3 Bn from Russia for new Nuke power plant, Greece is buying 450 Russian armored transporters and will produce T-80 tanks...
It seems to me that Russians won Balkans without single round fired...
Why doesn’t the US do the same? Cancel all Saudi/Venezuelan contracts and get it from the Russians...natural allies.
Send the muslims back to the desert!
Send Chavez back to ignonimity.
And build that bridge!
http://en.wikipedia.org/wiki/Bering_Strait_bridge
Nabucco is DOA because there is no LNG to fill it.
Also, Russians are not buying transit rights, they involve host countries as a partners. No banana republic style coup can jeopardize the business.
In Cold war Ruskies used oil and gas merely to pay for the military expenditure. Now they use military to guard their energy assets (and assets of their EU partners) and the profits are reinvested in military production for export. EU partners profit handosomely and the flow of money is steady. Capitalism at it's best.
Condi must be shaking her head in disbelief."new Europe", Poland, Baltics, even Ukraine and Belarus are neutralized with this plan. Having a Sovietologist at the head of Department of State is like having an astrologer for the head of NASA.
This needs to be repeated.
Sovietology = Scientology, both are now myths.
Problem is that Condi "wants to party like it's 1989" -- she is still treating the Russians as though they are "the Soviets". She needs a new play-book but refuses to acknowledge it, because she spent her whole life studying the old one. "Old dog", "new tricks" ... yada, yada...
South stream is an auxiliary lifeline to Germany. And German money is in the Gazprom.
Last but not least, Russian gas will reach Britain through Germany and Belgium.
Therefore, Serbian section of South Stream is in EU interest and EU knows that.
Department of State #3 jumped the ship. No#2 is making a fool of himself in Ljubljana.
What No.1 is doing is anyone's guess.
This is how American support to narcoterrorist "kosova" will end:
Russia is flush with oil/gas production. Go for it, it’s cheap. However, in rough times the history is that Russia’s production can fall to near zero. Keep your options open.
I have to study this gas deal further, because I am lost as to who (beyond the major players) is whose side and how this affects the US and the Kosovo issue.
Because if I get this, then all the Islamic butt-kissing & sellling out of Christians by the US in the Balkans was for absolutely nothing, because it was about the "Nabucco" deal and the fat lady literally just sang on "Nabucco". Is that right?
Unfortunatelly, it was not for nothing. If was detrimental to vital U.S. interests. Muslims respect only brute force. Once U.S. started accomodating radical Muslim desires and supporting Islamofascists in Bosnia and Kosovo, it lost Muslim respect as a formidable force that has to be feared.
Idiots in Department of State can not understand why Islamofascists hate America. The answer is simple - because they do not fear America any longer.
Well, if Russians cut us off, we will cut Germany and Western Europe off :)
Three days before Russia-Bulgaria-Serbia gas signing, Nicholas Burns resigned....
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