Majority package of NIS sold for 400m EUR, 0.5 billion EUR for investments

Agreement on energy cooperation between Russian Federation and Serbia in field of gas and oil economy and the Protocol on basic terms for procurement of "Petroleum Industry of Serbia" were signed on January 25, 2008, in Moscow.

Minister of Infrastructure, Velimir Ilić, signed these documents on behalf of the Government of Serbia, while the Minister of Industry and Energy, Viktor Hristenko, put his signature on Russian behalf. President of Russia, Vladimir Putin, said that the signing of the Agreement on energy cooperation in field of oil and gas economy and the Protocol on basic terms of procurement of NIS represented the important new page in Serbian-Russian cooperation.

The Energy Agreement between Serbia and Russia and the Protocol about sale of NIS to Gazprom Neft, which can be seen on the web site of the Government of Serbia, anticipate construction of main gas pipeline through Serbia with the capacity of minimum of 10 billion cubic meters of natural gas, sale of 51% of NIS for 400m EUR and minimum of 500m EUR worth of investments in modernization of that company, as well as construction of underground gas storage in Banatski Dvor.

It is expected that the contract on procurement of "Petroleum Industry of Serbia" will be signed in as short time as possible, by the end of year 2008 to the latest, whereas the obligation of Gasprom Neft is to modernize that company in the period between year 2008 and 2012.

According to the Agreement, Government of Republic of Serbia must secure market for oil derivatives produced by NIS within minimum of 2 years, but it is not stated when this 2-year period starts. Gazprom's daughter company Gazprom Neft will get the right to run NIS.

NIS a.d. Novi Sad

Moscow

Government of Serbia

Velimir Ilić

Viktor Hristenko

Vladimir Putin

Boris Tadić