Representatives of Mytilineos arrive to Belgrade – First meeting on manner of repayment of Serbia’s USD 40 million debt held

The Government of Serbia will adopt the decision defining in detail when and how Serbia is to pay the USD 40 million debt towards the Greek Mytilineos next week, Politika writes in the issue of January 20.

As the newspaper reports, citing unofficial sources from within the executive authorities, this is the epilogue of the first meeting held between the state commission for negotiations and representatives of Mytilineos, held on Friday, January 19, at the Ministry of Economy.

According to the decision of the International Court of Arbitration in Geneva, Serbia owes around USD 40 million in damages to the Greek company. As Politika’s source from the Government of Serbia says, the members of Serbia’s negotiation team offered to Mytilineos representatives for the debt to be repaid in installments.

– They showed that they had the good will and that it was acceptable to them in principle. Not all the details have yet been specified. The repayment schedule remains to be agreed – Politika’s interviewee says.

Unofficial sources from Mytilineos have also confirmed to the daily that the meeting has been held.

– We are not here to create problems, but to try to find the solution. It’s not good for either Serbia or Mytilineos for the issue to remain unresolved – says an unofficial source from the Greek company.

The daily’s source confirms that Mytilineos sent a memo to the Government of Serbia in early January reminding them of the obligations arising from the decision made by the court in Geneva.

– Before that, there had not been any official communication between representatives of the authorities and Mytilineos. However, there had been some unofficial contact with lawyers from Belgrade who represent Mytilineos’ interests – the source says.

Politika previously wrote that the Government of Serbia had formed the commission for negotiations with Mytilineos around fifteen days before and that the members were Minister of Economy Goran Knezevic, Minister of Energy Aleksandar Antic and representatives of the Ministry of Finance.

The cooperation between the Greek company and RTB Bor began in 1996, but was only formalized two years later, due to the sanctions. The agreement on multiannual cooperation between the two corporations was signed in 1998. The Greek company obliged to deliver 100,000 tons of ore concentrate for processing and around 3.5 tons of zinc needed for production at RTB Bor, which, in turn, obliged to deliver 1,500 to 1,600 tons of copper and copper-based products a month to the Greek partner. As Politika reports, the Bor company failed to honor this part of the agreement.

From 2004 till 2016, RTB Bor was protected from enforced collection by a decree of the Government of Serbia which initiated the restructuring of the company.

However, Mytilineos sued Serbia at the International Court of Arbitration in Geneva in 2005, Politika writes.

Serbia Zijin Copper doo Bor

Vlada Republike Srbije

Ministarstvo finansija Republike Srbije

Ministarstvo privrede Republike Srbije

Ministarstvo rudarstva i energetike Republike Srbije

RTB Bor

Government of Serbia

Ministry of Finance of the Republic of Serbia

Ministry of Economy of the Republic of Serbia

Ministry of Mining and Energy of the Republic of Serbia

Mytilineos

Mytilineos RTB Bor dispute

International Court of Arbitration in Geneva

RTB Bor debt to Mytilineos

Goran Knezevic

Aleksandar Antic