Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

Gas pipeline to make Serbia country with best economic prospects

Belgrade, 26 December 2006

Serbian Minister of Energy and Mining Radomir Naumov stated that Russia's "Blue Stream", the gas pipeline through Serbia which will supply Southeast, Central and West Europe with natural gas, will pretty soon make Serbia one of the most secure countries with best economic prospects when it comes to the energy sector.

Radomir Naumov

In an interview for today's edition of the daily Vecernje Novosti, Naumov said that following the signing of the memorandum with Gazprom on the construction of a major gas pipeline, all current and future pipelines in all municipalities in Serbia will have more than enough gas within two and a half years.

Speaking about benefits to the Serbian economy, Naumov stressed that the internal gasification of Serbia alone, especially of the region south of the Sava and Danube rivers, will be worth over €5 billion.

According to Naumov, the Serbian electric energy sector will also greatly benefit from it because once all heating plants, as well as most houses in the country's interior, start using gas instead of electricity and heavy oil, power stations, transformers and grids will no longer be overloaded.

Gazprom's gas pipeline, as the largest greenfield investment in Serbia worth $1.3 billion, will also stimulate the development of the economy and increase employment, added Naumov.

Naumov said that Serbia will be able to realise annual revenues worth €50 million, which is the minimum in transit revenues, which can go up to €200 million, but that is secondary in importance to the benefits for economy and economy rating which Serbia could have as a leading country for transit of energy in the region, because the Gazprom gas pipeline will go through Serbian territory towards Macedonia, Montenegro, Bosnia-Herzegovina and Albania.

The Minister said that the position of Serbia as a leader in southeastern Europe in energy was recognised this year in Brussels as well. He added that the demand for energy is increasing in the EU, and in other developed countries of the world, while reserves are exhausted.

Countries are making efforts to secure alternative, additional quantities of gas, electricity and oil, so that Serbia will certainly, and very soon, become an important country for transit of gas as well as for enormous amounts of electricity, said Naumov.

He recalled that the construction of a pan-European oil pipeline, from the Black Sea harbour of Constanta, through Pancevo, to northern Italy is also envisaged. He stressed that Serbia cannot be overlooked in that project, so that finally the country will get a historical opportunity to utilise its geostrategic position to the utmost.