Associated Press

Serbia ratifies oil and gas deal with Russia

By Jovana Gec, Associated Press Writer09.09.2008
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Serbian lawmakers on Tuesday ratified a pre-membership agreement with the European Union and an oil and gas deal with Russia after months of heated debate over the direction of the country's policies.

The agreements, both considered crucial for the Balkan nation's future, were signed earlier this year but needed parliamentary approval before they could be implemented.

The Stabilization and Association agreement with the EU will give Serbia access to EU funds and will ease trade with EU countries.

The pro-Western government supports this first step toward eventual membership in the 27-nation bloc, but the nationalist opposition rejects it because most EU member states support the independence of Kosovo.

The EU agreement had been blocked for years because of Serbia's failure to arrest top war crimes suspects sought by a U.N. war crimes court. But the capture in July of former Bosnian Serb leader Radovan Karadzic is considered a major boost for Serbia's EU bid.

The 250-seat parliament approved the agreement with 140 votes in favor and 28 against. Some members were absent.

The deal with Russia envisages part of a pan-European pipeline running through Serbia and that the Russians will buy Serbia's state oil monopoly, NIS.

Government officials have described the deal as "historic," but the liberal opposition has warned that it will give Russia full control over Serbia's energy sector. They also said that the price of €400 million ($568 million) for NIS is too low.

Russia has been Serbia's ally in its efforts to maintain claim on Kosovo, despite Western support for the province's declaration of independence from Serbia in February.

The Russian deal won support from 212 deputies; 22 were against.

Copyright 2008 The Industry Standard. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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