Closing Ranks
January 25, 2008
Serbia's pro-Western President Boris Tadic in Moscow on Friday, Jan. 25, thanked the Russian leadership for its support of Serbia in the Kosovo conflict, as the two countries agreed to grant Russia a major stake in Serbia's oil and gas industry.
In the presence of Tadic and Russian President Vladimir Putin, Russia's state-controlled oil concern Gazprom and Serbia's NIS signed an agreement granting Gazprom control of 51 percent of the Serbian company for 400 million euros ($586 million).
In addition, the two sides agreed to build a South Stream gas pipeline through Serbia to supply southern Europe in partnership with Italian energy supplier Eni.
The two Slavic countries also agreed to build a large gas storage facility in Serbia. According to pipeline plans, the gas is to be pumped in the future from the Black Sea region through Bulgaria and Serbia in the direction of the European Union.
The planned pipeline, it was said, was a Russian reaction to the competing project by the EU, which is planning the Nabucco pipeline to transport gas to the West through the Caspian Sea to limit the bloc's dependence on Russian energy deliveries.
Selling out for Kosovo?
Serbian Economics Minister Mladjan Dinkic has criticized the sale of NIS as a dissipation of state assets, adding that Gazprom should have paid at least 1.5 billion euros for the company.
Western diplomats in Serbia have speculated that the sale of NIS was a token of gratitude to Russia for its support in the Kosovo conflict.
"Without Russia's position, it would be very difficult for Serbia to protect its interests in Kosovo," the Interfax news agency reported Tadic as saying at the start of his meeting with Putin at the Kremlin.
Putin rejects independence
UN Security Council veto power Russia has rejected independence for the southern Serbia province of Kosovo against Belgrade's will.
"I am very happy that our political contacts are developing positively," Putin said about relations between the two countries, adding that he "categorically" opposed a unilateral declaration of independence by Kosovo.
"This would risk provoking serious damage to the whole of the international legal system and would have negative consequences both for the Balkans and the world," Putin said.
Kosovo's prime minister, Hashin Thaci, on Thursday said that a unilateral declaration of independence was just a matter of days.
Can Tadic survive?
Tadic was visiting Moscow almost a week before the Serbian runoff elections on Feb. 3. Tadic, who is backed by the United States and the European Union, is running against nationalist challenger Tomislav Nikolic.
Russian media considered the meeting in Moscow as support for Tadic in the election, with the daily Izvestiya on Friday postulating that Russia would profit more from a moderate Serbian president such as Tadic than the extremist Nikolic.
Nikolic is to visit Russia's parliament on Monday, according to news reports.
EU looks for incentive
European Union officials meanwhile were also keen to ensure Serbia's pro-EU orientation.
On Thursday, the current holder of the EU presidency, Slovenia, said the bloc hoped to sign a Stabilization and Association Agreement (SAA) with Serbia on closer integration "in the coming days."
But an SAA could be delayed as the Netherlands and Belgium are blocking such a step until alleged Serbian war criminal Ratko Mladic is handed over to the International War Crimes Tribunal in The Hague.
In order to send a positive signal to Serbia ahead of the Feb. 3 election, EU officials are now hoping to sign an interim pact on trade and cooperation.
"The idea is that the European Commission could be given the green light by foreign ministers next Monday to sign the interim agreement to give the Serbs some positive gesture," a senior EU diplomat told Reuters on condition of anonymity.
This move would, however, also require unanimous backing by all 27 EU members.