December 24, 2008

Russia buys stake in Serb oil company

The presidents of Serbia and Russia signed energy agreements Tuesday that include the sale of 51 percent of the Serbian state oil company to Gazprom Neft.

Serbian President Boris Tadic is on a visit to Moscow, the RIA Novosti news agency reported. He and President Dmitry Medvedev signed documents finalizing a preliminary agreement negotiated nearly a year ago.

Gazprom is also to invest in a Serbian oil storage facility and the Serbian segment of a pipeline.

These three key projects, which we agreed and signed, are actually referred to as landmark events, Medvedev said.

Gazprom Neft, the oil arm of Gazprom, is to pay $560 million for a controlling interest in Naftna Industrija Srbije.

Officials with Gazprom and NIS were also at the ceremony and signed a memorandum of understanding and protocol of cooperation, Tanjug said.