Russia says 2008 agreement with Serbia hasn't changed, but problems affecting NIS
MOSCOW. Oct 15 (Interfax) - Russia works on the basis that an agreement signed with the Serbian government back in 2008 has not changed but notes a number of problems affecting oil and gas concern Naftna Industrija Srbije (NIS), which is controlled by Russia's Gazprom Neft .
"We proceed from the basis that [the intergovernmental agreement] is unchanged. There are many nuances and problems there and they will be discussed. Our president [Vladimir Putin] discussed this with Serbian President Tomislav] Nikolic in July, and this discussion will now be continued," Russian Presidential Aide Yury Ushakov told reporters, commenting on the planned visit by Putin to Belgrade on October 16 and the topics that will be discussed during Russian-Serbian meetings.
Ushakov said the issue of unpaid debts to NIS from a number of Serbian state companies had yet to be resolved. It was reported that the total sum of this debt exceeds 530 million euro.
In August 2013, a Serbian government resolution was adopted that tightened the tax regime for NIS. "We think that this is a violation of the intergovernmental agreement that was signed in 2008, in accordance with which the tax conditions should not worsen the financial position of NIS," the presidential aide said.
In addition, an investigation into the privatization of NIS was launched at the end of the summer of this year, Ushakov said.
"The Serbian government, including President Tomislav Nikolic, promised us that they would resolve the situation. For now that promise has not been fulfilled," he said.
Ushakov said NIS had changed from a loss-making company into Serbia's biggest taxpayer and accounted for 14% of tax revenue or about 1 billion euro annually.
The 2008 intergovernmental agreement between Russia and Serbia stipulated that Gazprom would build a branch of the South Stream gas pipeline through Serbia, and that Gazprom Neft would acquire a 51% stake in NIS for 400 million euro, and also that the Russian oil company would invest another 500 million euro in NIS before 2012.
NIS is one of the largest vertically integrated oil companies in Central Europe. The company produces around 1 million tonnes of oil a year. It owns oil refineries in cities of Pancevo and Novi Sad with a total refining capacity of 7.3 million tonnes a year. NIS also owns a large network of filling stations.