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The Government of the Republic of Serbia

In the service of citizens

Formation of mixed working group for solving newly developed situation in Mobtel proposed

Belgrade, 17 January 2006

Serbian Prime Minister Vojislav Kostunica said today in talks with Austrian Vice Chancellor and Federal Ministry for Transport, Innovation and Technology Hubert Gorbach that Serbia and Austria have good relations and economic cooperation has improved dramatically, proven by the fact that within the past few days several Austrian firms have invested in Serbia.

Kostunica said that it is necessary to resolve problems related to the company “Mobtel” and recalled that at the meeting held with Gorbach on May 13 of last year the Serbian delegation pointed out that there are a number of legal problems in the ownership structure, and that in Zurich arbitration is being conducted concerning ownership between “BK Trade” and state telecommunication and postal company PTT Serbia.

He said that it is necessary to resolve the problems that have appeared concerning the Austrian investors who signed an agreement last year to purchase “BK Trade” and expressed regret that at that time the Austrian investors were not more open towards the Serbian government that considers itself the majority owner of “Mobtel”.

Kostunica proposed the formation of a mixed working group which will be given the task of finding a solution for the newly developed situation in “Mobtel”.

Gorbach said that relations between the two countries are very good and that Austria gives full support to Serbia-Montenegro on becoming a member of the European Union, of which Austria is currently President. He also said that Austria is still interested in further investment into Serbia.

He expressed understanding concerning the legal dimension of the Serbian government’s activities in the case of “Mobtel”, and said that Austrian investors are not being singled out. He said that, on the other hand, he also has understanding for the need of Austrian investors to protect their interests.

Hubert Gorbach

Gorbach supported Kostunica’s proposal to form a working group and agreed that it is necessary to deal with the newly developed situation and find a solution that can satisfy the interests of Austrian investors.

He conveyed to Kostunica the invitation of Austrian Chancellor Wolfgang Schussel to visit Vienna in the very near future, so that the further improved relations between the two countries can continue.

The meeting was also attended by Serbian Deputy Prime Minister Miroljub Labus, Serbian Minister of Economy Predrag Bubalo, Serbian Minister of Capital Investment Velimir Ilic and Director of PTT Serbia Dragan Kovacevic.