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The Government of the Republic of Serbia

In the service of citizens

Normalisation of gas delivery from Russia as of today

Belgrade, 27 January 2006

Serbian Deputy Prime Minister Miroljub Labus talked today with Vice President of the Russian gas company Gazprom and General Director of Gazexport Alexander Medvedev about the current energy situation and the possibilities for the Russian companies to invest in Serbia's gas infrastructure.

Labus voiced concern over the reduction of gas supplies since it has enormous negative consequences to citizens, the economy and the country's energy situation.

Medvedev explained that gas reductions are caused by frigid temperatures and problems which Russia has in the transport of gas. He promised that as soon as today the normalisation of gas supply will begin and that it will be completely stabilised by the end of the week. Serbia will again be receiving the agreed 10 million of cubic meters of gas per day.

The Russian side expressed interest in investing in infrastructural objects of the gas economy, which are the priority of Serbia's energy development strategy and should secure the safety of the energy system. This includes the completion of the underground gas storage in Banatski Dvori and other routes for gas transport like Nis-Dimitrovgrad and Mokrin-Arad.

Labus said that the Serbian government will secure all preconditions for the realisation of these projects as soon as possible. He said that Gazprom, as Serbia's strategic partner, is very important to the Serbian government and voiced hope that that company will offer the most favourable terms for the realisation of these projects.

He stressed that the interest of the Serbian government is to become the country of transit for all energy products, especially gas and electricity.

The Serbian government is very satisfied because of the Russian side's interest in investing in these strategically important infrastructural projects and will do everything to enable their realisation, Labus concluded.