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The Government of the Republic of Serbia

In the service of citizens

Serbian-Russian working group for boosting cooperation to be formed

Belgrade, 30 May 2007

Serbian Deputy Prime Minister Bozidar Djelic said today that during a meeting with representatives of the Russian business delegation, an agreement was reached to set up a working group that will be composed of several ministers which will work on improving business cooperation and investments between the two countries.

Djelic said after the plenary meeting with the Russian delegation held at the Serbian Chamber of Commerce that it is in Serbia's interest to attract Russian capital, not only in the energy sector, but also in the privatisation of the Serbian Oil Industry NIS. On that occasion, a high delegation of the Gazprom will come to Belgrade next week with whom Serbian government representatives will talk about gasification and gas storage in Banatski Dvor, as well as about possibilities for the construction of gas heating plants in Serbia.

The Serbian Deputy Prime Minister voiced hope that Russian investors will take part in the repeated tender for sale of the Bor mining and metallurgical complex and added that Russian investments are desired in the financial sector as well.

Djelic voiced hope that the Moscow bank will open an office in Serbia and that other Russian banks will also come to Serbia and get a greenfield licence or take part in the privatisation of remaining banks in which the state will sell its part.

According to him, privatisation of Jat Airways, which has attracted the interest of Russia’s Aeroflot, was not discussed with the Russian delegation. The government will create a precise restructuring strategy by August and thus open the door to the company’s privatisation.

Djelic stressed that Serbia pledges for urgent ratification of the Agreement on free trade in the Russian Duma, which would improve the cooperation between Russia and Serbia.

He announced that Serbian Prime Minister Vojislav Kostunica and Russian President Vladimir Putin will meet in early June as part of the Economic Forum in St. Petersburg. The two officials will discuss issues of relevance for both countries, Djelic said.

The Deputy Prime Minister expressed expectation that EU stabilisation and association talks will resume in a few weeks’ time.

At the invitation of the Prime Minister, ICTY Chief Prosecutor Carla Del Ponte is coming to Belgrade next week and I am sure that her report will significantly influence the decision of the EU on continuation of negotiations with Serbia, Djelic said.

He also added that he is optimistic about Del Ponte’s report, after which EU officials would decide to renew negotiations with Serbia.