Gazprom may take stake in Serbia’s Petrohemija

By bne IntelliNews October 8, 2014

bne -

 

Russian gas giant Gazprom may take a stake in Serbian petrochemicals company HIP-Petrohemija in return for writing off Serbia’s outstanding natural gas debts. 

Serbian Foreign Minister Ivica Dacic said during a visit to Moscow on October 7 that the debts may be exchanged for a stake in Petrohemija. He did not specify how large the stake would be. 

"We talked today and agreed to repay the debt with the property, specifically the Petrohemija company,” Dacic told journalists in Moscow, according to reports in the Serbian press.
Serbia has outstanding debts of around $180m for natural gas supplies from Russia. This includes $148m for supplies during February-March 2013 and March-April 2014, as well as $34.8m for gas supplied back in 1995-2001, according to a source quoted by ITAR-TASS

Gazprom has proposed extending the terms for its repayment scheme for the 1995-2001 supplies until the end of this year, which would mean payments of $3 per 1,000 cubic metres added to the payments Serbia is due to make for gas supplies this year. 

HIP-Petrohemija is Serbia’s largest petrochemicals company, with total capacity of more than 600,000 tonnes a year. The Pancevo-based company generates around 80% of its revenues from exports, mainly to European Union countries. 

However, the company was forced to suspend production during the global financial crisis, later restarting operations after receiving financial support from Belgrade and agreeing to reschedule its debts with oil and gas company Naftna Industrija Srbije (NIS), which is 56.15 % owned by Gazprom. In 2011, it signed a strategic cooperation deal with NIS. 

During his visit to Moscow, Dacic also asked Russia to look at alternative ways to supply gas to Serbia, as supplies to both Serbia and other East European countries via Ukraine have dropped recently. 

Serbia is planning to go ahead with construction of its section of the South Stream gas pipeline that will carry gas from Russia to Europe, bypassing Ukraine. The director of Serbian state gas company Srbijagas, Dusan Bajatovic, said on September 26 that he expects work to start in late October or early November, despite opposition from the European Union to the project. 

Related Articles

Drum rolls in the great disappearing act of Russia's banks

Jason Corcoran in Moscow - Russian banks are disappearing at the fastest rate ever as the country's deepening recession makes it easier for the central bank to expose money laundering, dodgy lending ... more

Kremlin: No evidence in Olympic doping allegations against Russia

bne IntelliNews - The Kremlin supported by national sports authorities has brushed aside "groundless" allegations of a mass doping scam involving Russian athletes after the World Anti-Doping Agency ... more

PROFILE: Day of reckoning comes for eccentric owner of Russian bank Uralsib

Jason Corcoran in Moscow - Revelations and mysticism may have been the stock-in-trade of Nikolai Tsvetkov’s management style, but ultimately they didn’t help him to hold on to his ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss