The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Milan Bacevic, Minister of Natural Resources, Mining and Spatial Planning of the Republic of Serbia, Co-Chairman of the Russian-Serbian Intergovernmental Committee on Trade, Economic and Scientific & Technical Cooperation.

The participants of the meeting addressed the status of the bilateral cooperation in the energy sector, paying special attention to the collaboration within the South Stream project. It was noted that the project was being implemented in Serbia ahead of schedule. Thus, the construction of South Stream's Serbian section may start in late 2013 instead of 2014 as planned before. In addition, the parties discussed the financial aspects of the gas pipeline construction in Serbia.

At the end of the meeting, Alexey Miller and Milan Bacevic stressed that the project progress was indicative of the parties' mutual interest in its execution.

Background

In 2012 Gazprom Group supplied Serbia with 1.5 billion cubic meters of natural gas.

Srbijagas is a state-owned company dealing with natural gas transmission, distribution and storage in Serbia.

With a view to diversify the natural gas export routes Gazprom is implementing a project for the construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project. Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia and Croatia in order to implement the onshore gas pipeline section.

In November 2009 South Stream Serbia AG joint project company was registered. Gazprom holds a 51 per cent stake in the company and Srbijagas – a 49 per cent stake.

The Banatski Dvor UGS facility was ceremonially put onstream on November 21, 2011. The UGS facility is one of the largest gas storages in Southeastern Europe. Its working gas capacity makes up 450 million cubic meters, peak deliverability – 5 million cubic meters per day.

In October 2012 a final investment decision was approved for the South Stream project in Serbia.

In February 2013 the Skupstina of the Republic of Serbia adopted the Law on the Public Interest and the Special Expropriation and Permitting Procedures with regard to the South Stream Construction.

In March 2013 a long-term contract was signed for Russian gas supplies to Serbia in the amount of up to 1.5 billion cubic meters of gas annually for a period of 10 years. Gas will be conveyed via the existing route and in the future – via the South Stream gas pipeline.