Parliament ratifies agreements on Russian gas and on approval of loan for Serbian Railways

The Serbian parliament ratified Friday (15 March 2013) two agreements with Russia - on the delivery of natural gas and on the approval of a USD 800 million state export loan to the Serbian government for Serbian Railways.

The Serbian government said in a release that the ratification of the agreement on gas deliveries would ensure stable supply until 2021, with 5 billion cubic meters of gas expected to be delivered every year.

Gazprom and the public company Srbijagas should meet every year to sign agreements on volumes, terms and deadlines for natural gas deliveries as well as those defining the rights and obligations of signatories.

The agreement stipulates that Yugorosgaz will continue to build the gas pipeline in Serbia and sell natural gas to consumers in the country.

According to another agreement with Russia, proceeds of a USD 800 million state export loan to the Serbian government will be used to finance infrastructure projects and the procurement of rolling stock for Serbian Railways.

The loan repayment period is five years, with an annual interest rate of 4.1%.