Russia's Gazprom Gets 51% of Serbian Section of South Stream

Russia and Serbia signed several cooperation agreements Tuesday including a deal on the South Stream gas transit pipeline.

The documents were signed by the two Presidents, Dmitry Medvedev and Boris Tadic, in Belgrade, ITAR-TASS reported.

Russia’s energy giant Gazprom and Srbijagaz signed a protocol on the Serbian section of the South Stream pipeline. According to the protocol, the two sides are expected within 30 days to seal the creation of their joint company South Stream Srbija, which is going to be in charge of the planning, construction, and operation of the South Stream pipeline on Serbian territory.

Under the deal, Gazprom gets a 51% share of the joint company, and Srbijagaz gets 40%.

The two gas companies also signed an contract for the setting up of a joint company for creating a natural gas storage facility, “Banatski Dvor”. Here the Russians get a 51% share as well.

In addition to the energy deals, Russia and Serbia also signed agreements on warning against natural disasters, and on cultural, educational, and sports cooperation for 2009-2011.

Russia signed its South Stream deal with Bulgaria in January 2008 during the visit of former President Putin to Sofia. Gazprom has a share of 50% of the Bulgarian section of the South Stream pipeline, and so does the Bulgarian energy company Bulgargaz.