South Stream deal signed

Russian and Serbian officials signed a number of energy deals. Gazprom and Serbiagaz, two national gas corporations, sealed a deal on forming a joint company, which will construct and operate the Serbian segment of the South Stream gas pipeline.

Russia will also help Serbia build an underground gas storage “Batansky dvor” with a volume of 450 million cubic meters.

Dmitry Medvedev stressed that projects like these contribute to European energy security, which Russia as a major energy state regards as very important for its foreign policy.

Loan still in negotiations

The two leaders were expected to announce a deal on a billion-euro loan, which Belgrade asked Moscow to provide, according to Serbian media. This did not happen.

RIA Novosti agency cites a source in the Russian delegation as saying that the signing of the deal was not planned for this visit.

Meanwhile, ITAR TASS cites Russian Emergencies Minister Sergey Shoigy, who is part of the Russian delegation, as saying that the decision on the loan will be issued over the course of the day.

Vladimir Fegin, director of the Moscow-based Institute of Energy and Finance, explained why Russia is extending a helping hand to Serbia:

“In these difficult times, it is the goodwill of Russia to assist Serbia, based on historical relationships, sympathy, growing cooperation and integration into [Serbia’s] energy sector and infrastructure.”

Serbia to host Russian base – for firefighters

The two countries have agreed to develop cooperation in humanitarian action. A special base near the Serbian city of Nis will be established to coordinate disaster prevention and rescue missions.

Boris Tadich praised Russian firefighters, who have been helping their European colleagues in Serbia, Greece and other countries to fight against mass summer fires.

Another area of cooperation is the mine sweeping of Serbian territory, which remains dangerous after the armed conflicts of the 1990s. Russian engineers are already helping Serbs in this work.