Serbia to sign 3 energy deals during president's visit to Moscow

BELGRADE, December 11 (RIA Novosti) - A Serbian delegation led by President Boris Tadic will arrive in Moscow next week to sign three oil and gas deals with Russian energy giant Gazprom, a Russian diplomatic source said on Thursday.

A preliminary agreement was signed in Moscow on January 25 that includes the acquisition by Gazprom's oil arm Gazprom Neft of a 51% stake in state-owned Naftna Industrija Srbije (NIS) for $400 million, Gazprom's $500 million investment in a gas storage facility in Serbia, and the construction of the Serbian segment of the South Stream pipeline.

"The Serbian delegation will be in the Russian capital on December 17. It will be led by President Tadic," the source in Belgrade said. Tadic's visit will come a week after his last trip to Moscow, for the funeral of Russian Orthodox Patriarch Alexy II on December 9.

On December 5, during talks with Gazprom CEO Alexei Miller in Belgrade, the Serbian president confirmed the agreements would be signed by the end of the year.

Under the South Stream project, a 400-km (248 mile) leg will be built in Serbia for Russian natural gas supplies to and via the Balkans.

NIS produces around 1 million metric tons (7.3 million barrels) of crude annually, refines 7 million metric tons (51 million barrels), and has Serbia's largest network of filling stations.

Gazprom Neft, known as Sibneft before it was taken over by Gazprom in September 2005, produced 32.7 million metric tons (240 million barrels) of crude and posted a US GAAP net income of $4.14 billion in 2007.