Gazprom acquires stake in Serbian oil firm

BELGRADE, Serbia, Sept. 24 (UPI) -- The Serbian government said there are no obstacles remaining for the acquisition of the state-owned oil firm Naftna Industrija Srbije by Russia's Gazprom.

Serbian officials met with top Russian authorities earlier this week to resolve outstanding issues in the deal whereby Gazprom Neft, the oil division of Gazprom, acquires a 51 percent stake in NIS, the Russian business daily Kommersant reported Wednesday.

Gazprom Neft will acquire the stake for $590 million and invest at least $730 billion over the next four years to refurbish Serbian infrastructure.

The Russian energy giant also will build a branch of the South Stream natural gas pipeline to transport Russian resources to European markets through Italy.

Serbian Prime Minister Mirko Cvetkovic said in July the negotiated price for the deal was inadequate, and in early September Deputy Premier Mladjan Dinkic said the deal required further scrutiny. Parliament had approved the deal Sept. 9, however.

First Deputy Prime Minister Ivica Dacic in the Ministry of Internal Affairs said the latest moves on the NIS acquisition were a sign of the strong ties between Serbia and Russia.

"Russia has repeatedly shown that it is our dependable ally. If anyone in Serbia doubts that, let him find us another one," he said.