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The Government of the Republic of Serbia

In the service of citizens

Russia, Serbia agree to speed up realisation of Russian loan

Belgrade/Moscow, 28 October 2010

The Co-chairmen of the Intergovernmental Russian-Serbian Committee for Trade, Economic, Scientific and Technical Cooperation, First Deputy Prime Minister and Minister of the Interior Ivica Dacic and Russian Minister of Emergency Situations Sergei Shoigu, stated in Moscow today that the Committee meeting was successful and that there is great potential for cooperation in many sectors.

Ivica Dacic

Following the meeting, Dacic declared that they agreed to speed up talks on the realisation of a Russian loan for the Serbian railway network and that according to the Free Trade Agreement between Serbia and Russia, customs tax will be revoked for producers of furniture, TVs, carpets and floor coverings.

As for the Russian loan, agreed upon by the Russian and Serbian Presidents, Dmitri Medvedev and Boris Tadic, Dacic underlined that everything has been arranged and that over the next several months all projects will be completed. So far only $200 million has been used of the total amount of $1 billion, he added.

Serbia is interested in investing these funds in railway infrastructure, specifically the construction of a Belgrade railway hub and the Valjevo–Loznica railway, Dacic recalled.

It has been agreed with Russian representatives to accelerate works on the reconstruction of the Djerdap 1 power plant, as part of the settlement of a clearing debt of the former Soviet Union to Serbia, he noted.

Overall and political relations between Serbia and Russia are exceptional, Dacic remarked, noting that their economic cooperation could be raised to a higher level.

Implementation of the energy agreement is very important for Serbia and we want it to continue. The Serbian oil industry Naftna Industrija Srbije (NIS) is doing well and may become a leader in this sector in south-eastern Europe.

As previously agreed, we are working on the realisation of the South Stream project, and Srbijagas and Gazprom are cooperating on the construction of the underground gas storage facility in Banatski Dvor and other projects.

Dacic recalled that Serbia signed a Free Trade Agreement with Russia and that in line with it, more customs tax is being revoked every year. This year, the customs tax will be revoked for producers of furniture, TVs, carpets and floor coverings.

He recalled that in the meantime, a similar agreement was signed between Kazakhstan, Belarus and Russia, which means that Serbia now has a free trade agreement with a market of over 800 million people.

These countries include the EU, Russia, Kazakhstan, Belarus, Turkey, CEFTA and EFTA countries and others, Dacic remarked, noting that there is a possibility of Serbian and Russian companies cooperating in third markets.

In the first eight months of 2010 foreign trade between Serbia and Russia stood at $1.7 billion, Dacic observed, adding that this year’s trade volume will exceed last year’s and will double in the years to come.

It was also agreed at the meeting to conclude the formation of a regional humanitarian centre for response in emergency situations, which is to be set up in Nis.

The Serbian delegation in Moscow also included Minister of Foreign Affairs Vuk Jeremic, Minister of Energy and Mining Petar Skundric and Minister of Infrastructure Milutin Mrkonjic.