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The Government of the Republic of Serbia

In the service of citizens

Allies supporting Serbian stance on Kosovo increase in number

Cacak, 14 December 2006

Serbian Prime Minister Vojislav Kostunica said today he is convinced that the solution to Kosovo-Metohija will be preservation within Serbia since the country's allies supporting its stance and arguments in favour of territorial integrity and sovereignty are increasing in number.

Vojislav Kostunica

At a press conference following the government's session held in Cacak Kostunica said it is important to find a sustainable and compromise solution respecting international law and European values.

He stressed that the solution cannot be sought under the pressure of imposed time limitations adding that some may have expected the solution to be reached promptly but the entire matter has been prolonged, as well as the mandate given to UN Special Envoy Martti Ahtisaari.

The Prime Minister said that some officials now see that it was wrong to impose deadlines when it comes to finding a solution to the Kosovo issue and are aware that the error should not be made again.

Speaking about the UN Secretary General's speech in which he voiced praise for the democratisation process in Kosovo, Kostunica commented that it would be better to wait for the new Secretary General's opinion, having in mind that Kofi Annan's mandate is drawing to a close.

Speaking about standards and status in Kosovo-Metohija, there are many statements that do not match the facts. It is enough to look at how things are there and become convinced that the reality is completely different, the Prime Minister said.

He said that things are very often set the wrong way round and added that at the UN Security Council session, some speakers said that by solving the status, the standards will be solved too. However, the Prime Minister reiterated that a few years ago the position of the international community and UNMIK was that the future status of Kosovo-Metohija should be resolved only after all standards are fulfilled.

The motto was "standards before status", but now it has turned into "status first, and standards can be forgotten", Kostunica said and reminded the public to the recent mining of a railroad near Zvecane and numerous crimes against Serbs which are the best indicator of the situation in the southern Serbian province.

The Prime Minister said at the conference that the Serbian government has good cooperation with local self-governments around the country and said that the report of the European Bank for Reconstruction and Development, according to which Serbia is the regional leader in reforms the second year in a row is good proof of the successful implementation of economic reforms.

Predrag Bubalo

Serbian Minister of Economy Predrag Bubalo said that the initialled and soon to be signed agreement with Russia on the settling of the clearing debt contains solutions that will encourage further development.

He reiterated that $188 million will be used to cover Serbia's debt to Russia for the gas it received, whereas $100 million will be used to revitalise six turbines at the Djerdap hydroelectric power plant which will considerably extend the plants usability period. Between $5 and $6 million will be used for the reconstruction of an accelerator at the Vinca Institute for Nuclear Research, he added.

According to Bubalo, another important agreement was reached in Moscow and refers to the construction of a gas pipeline through Serbia to enable gas delivery from Russia to Northern Italy.

Bubalo said that the agreement will bring two huge benefits for Serbia: it will no longer have problems with gas supply during winter months, due to which the Serbian economy has suffered great losses, and will make a profit since Russian gas will have to cross its territory to reach other countries.

He added that around $1 billion will be invested in the project.

Moreover, Bubalo stressed the importance of further liberalisation in trade with Russia based on the Free Trade Agreement, adding that thanks to this agreement Serbia expects a considerable reduction in its foreign trade deficit to take place.

The Minister said that as for Russia, two of its interests will also be realised, namely, a Moscow bank will buy a portion of Agrobanka's shares and Russian partners will be enabled to participate in the privatisation of Prva Petoletka from Trstenik.

Velimir Ilic

Serbian Minister of Capital Investment Velimir Ilic said that the realisation of the project for construction of "Simorackovo" on the Rzav River will begin in 2007, which will improve the water supply system in the municipalities of Arilje, Pozega, Lucani, Cacak and Gornji Milanovac.

Ilic said that this is a real capital investment of greater importance whose value ranges from €60 million to €70 million.

He said that a concession contract for the construction of the Horgos-Pozega highway has been prepared and should be adopted in early January. The concessionaire that has won at the tender accepted all conditions set.

Ilic also said that a ring road at the motorway Cacak-Pozega in Ovcar Banja will be completed by the end of April 2007.

Ilic said that at today's session of the government in Cacak, an agreement has been reached with the local self-government on the dislocation of the Secretariat of Interior in this city. Its building will be used for housing institutions of culture.

The Serbian Minister of Capital Investment announced great investments in roads and other infrastructure in the Morava district, especially in the municipalities of Lucani and Ivanjica.