Russian PM approves agreement on gas deliveries to Serbia

Russia and Serbia will sign an agreement on the delivery of 5 billion cubic meters of the Russian natural gas to Serbia per year in the period 2012-2021, it was announced on the Russian government's website.

According to a release at the website http://government.ru/, Prime Minister Dmitry Medvedev granted the draft agreement.

The price at which Serbia will buy the Russian is not mentioned in the text of this agreement, but the condition for Serbia to get these deliveries is to pay the old debt for gas in the amount of USD 30 million.

The agreement reads that "the Serbian side guarantees that it will pay for the deliveries of the Russian gas on time and in full," and in case it is late with the payment, "the supplier can unilaterally halt the delivery of gas."

"Natural gas that will be delivered to Serbia, under this agreement, will be used by consumers in the market of the Republic of Serbia," reads the document.

A protocol accompanying the agreement reads that Serbia guarantees that Srbijagas' debt of USD 30 million to Russia's Gazprom Export for the gas delivered in the period between November 2000 and January 2001 will be paid by the end of 2014.