Serbian gov't sets up teams for talks on long-term gas deal with Russia, NIS issue

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic said on Sunday the Serbian government had set up teams for talks with Russia about a long-term gas deal and about Serbia's majority Russian-owned oil firm NIS, which is set to face US sanctions.

Speaking to Tanjug after a government session, Djedovic Handanovic said a coordinating body for the two teams had been formed as well and that it would be headed by PM Milos Vucevic.

She said the teams would include cabinet ministers and that the government would be striving to prevent the fallout from the announced US sanctions on NIS from spilling over into the national economy.

"We will also be striving to ensure a new long-term deal with Russia on gas supplies," the minister said, noting that people need not worry as the relevant authorities would find the best possible solutions.

"The news we are getting regarding sanctions on NIS are not good but, in the days and weeks to come, we will be working on preserving energy stability and security, as well as our economy," she said.

The minister said she could not elaborate on the solutions as work on several scenarios was underway and that Belgrade was waiting for the final document on the sanctions to see their intended scope.

"The most important thing is to speak with both sides, but primarily with the Russian Federation, which is our partner in the energy sector. We are getting gas supplies primarily thanks to Russia and the good relations with Russia. We must maintain that, and that is the absolute priority. We will be conducting the talks in that spirit, of course, with President (Aleksandar) Vucic at the helm - he has announced discussions with (Russian President Vladimir) Putin, and that is very important," she said.