Russians not coming to Smederevo? - Serbian government prepares backup plan for steel mill

Despite the announcements, Russia's Uralvagonzavod has not yet prepared an offer for Zelezara Smederevo steelworks. As Blic was told by people at 11 Nemanjina Street, more details will be unveiled later this month. They also added that the government was "preparing an alternative solution - just in case."

Negotiations with the Russian partner, which was the only company to express interest in the acquisition of Zelezara Smederevo in the pre-qualification process, were supposed to commence in mid-February. According to the latest, unofficial information from Moscow, Uralvagonzavod has given up the idea to become the 100-percent owner of Smederevo's steelworks.

Blic cites its sources as claiming that the analysis performed has shown that it would be much better if the state of Serbia was to conclude an agreement with Uralvagonzavod to establish a joint venture, similar to the one that the government formed with Fiat for the purpose of producing cars in Kragujevac.

- Such idea was also mentioned to us during the visit of our delegation to Moscow. However, nothing similar has been officially suggested to us - Blic cites its sources in the Serbian government as claiming.

Unofficially, one of the possible alternative solutions is to invest in Zelezara Smederevo's new portfolio, which would make it possible for its products to find their way to buyers in this part of Europe as well as Serbia.