Gazprom Signs Deal With Serbian Authorities

Russia and Serbia have today signed an historic agreement for the management of Serbian energy supplies, in a move that has further consolidated Russia’s dominance in the Baltic energy markets and supply of energy throughout Eastern Europe.

The agreement reached today by the government of Serbia and Gazprom, the state-owned Russian energy giant, will allow the Russians to run gas pipes from Serbia in to Eastern Europe as it moves to acquire 51% of the government run oil business as part of its sprawling European energy empire.

Whilst the terms of the deal haven’t been disclosed, it is thought that it could amount to some $2 billion, and any political motivations have been strongly denied by both sides. However the move has attracted the attention of the European Union, who have been somewhat critical of Russia and Gazprom’s continued expansion.

The deal comes as a wider strategy at Gazprom to expand its energy business throughout the Baltic regions, in the wake of its decision to build a substantial Black Sea pipeline through Bulgaria and with the backing of the Serbian government with a view to increasing supply to Southern Europe.

The move comes at one of the most politically sensitive times for Russia and the EU, revolving around the issue of Kosovo’s prospective independence from Serbia, and of course the growing concern in European circles as to Russia’s energy market dominance, which looks set only to increase as oil resources deplete.

Russian premier Vladimir Putin, in the midst of a presidential campaign, has branded the move as critical to the ongoing success of the Russian energy market, quoted as saying “”Serbia is becoming a key hub in the prospective Russian energy supply to southern Europe.”

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