REPUBLIC OF SERBIA - MINISTRY FOR FOREIGN AFFAIRS

 AUSTRIAN ATTACHE: AUSTRIA LEADING INVESTOR

SERBIA – RUSSIA / ENERGY AGREEMENT

JEREMIC: ENERGY AGREEMENT TO BE FINALIZED BY END OF YEAR

BELGRADE, Dec 15 (Tanjug) - Foreign Minister Vuk Jeremic said he expected that the Serbian-Russian energy agreement would be finalized by the end of 2008, and assessed that the arrangement represented "Serbia’s most important economic project in the last several years." "We expect a finalisation of the gas and oil arrangement between Serbia and the Russian Federation. The realisation of this arrangement will ensure strategic economic stability not only in Serbia, but also in the entire West Balkan region," the Serbian foreign minister told journalists, following a ceremony at which EFG bank awarded scholarships to the best students in Serbia. Jeremic underlined that once the agreement had been signed, the West Balkan region "will become a lot more attractive for direct foreign investments." "With this (agreement), the energy stability will be cemented. I am convinced that by the end of the year, the agreement will be finalized at the highest state level," he stressed. Srbijagas gas company Director Dusan Bajatovic said that progress had been made in the negotiations with the Russian side on the sale of 51 % of shares of the Petroleum Industry of Serbia (NIS).

COOP WITH RUSSIA DOES NOT CHANGE EUROPEAN COURSE

BELGRADE, Dec 16 (Tanjug) - The situation involving the expected sale of the Serbian Petroleum Industry NIS to Russia’s Gazprom and the concurrent pause in the integrations with Europe does not necessarily imply an about turn in Serbia’s foreign policy from Brussels to Moscow, MP Dragoljub Micunovic has said. Today’s interview with Micunovic is the first in a series of such items made with officials of leading parties in connection witrh Serbia’s stand toward the EU and Russia that the Belgrade daily Politika will publish in the course of this week. Serbia’s foreign policy is pro-European, Micunovic said. "Geopolitically, economically, historically, culturally, that is our space whose destiny we share. That should be and is our main strategy, as the entire framework leads to that. We should have the best possible bilateral relations with Russia for the simple reason that we are linked both by our cultures and by our economies," Micunovic told Politika. "We also had close political cooperation with Russia during the entire time of the international debate involving the Kosovo crisis and there is no reason not to continue developing these relations in the area of the economy as well," he said. The Belgrade authorities can achieve the same level of good relations with Russia, with the EU, and with the USA, Micunovic said.

51 % OF SERBIAN OIL INDUSTRY WORTH LESS THAN EUR400M

BELGRADE, Dec 16 (Beta) - The chief Russian negotiator for the sale of the Serbian Oil Industry, Dmitri Malishev, has said that 51 % of the stateowned Serbian oil company is no longer worth the EUR400 million written in the energy agreement. In an interview for Press, he said that despite the Serbian Oil Industry being worth less than was agreed in the energy deal, the Russian side will respect it. "We are sticking to what we promised in the interstate agreement. The reconstruction and modernization of the refinery will begin as soon as we become shareholders in the Serbian Oil Industry," said. He refuted claims made by some media outlets that the Russians are planning to close the refinery in Serbia. According to Malishev, the reconstruction of the Serbian Oil Industry refinery would be an investment by Gazprom, which the Serbian oil company, after the reconstruction and when it can produce competitive quantities of fuel, would return. "We propose to make this investment on a longterm basis, something like a loan with a relaxed repayment system, and the Serbian Oil Industry will return the money to us when it is financially stronger I suppose that would be in ten years’ time," said Malishev.

GOVERNMENT IS NOT SHAKEN

BELGRADE, Dec 16 (Beta) - Branko Ruzic, whip of the Socialist Party, said that the government of Serbia was not "shaken" over the goingson surrounding the natural gas deal with Russia. "The government is in no way shaken. The government has outlined its strategic directions and the goals it wants to achieve, which is the oil and gas arrangement with Russia," Ruzic told journalists in the parliament. He said that every political party was entitled to its opinion, but that they had to respect the decisions of the government. "If G17 Plus sees itself in the government of Serbia, I am sure it will stick with the decision the government stated as a strategic goal. Personal opinions about the natural gas arrangement can be used for columns in tabloid newspapers, but seriousness must be demonstrated in the government," Ruzic said. Ruzic averred that possible support in parliament from the Serbian Progressive Party for adopting the agreement with Russia had not been negotiated officially, and that these were only stories from newspapers. G17 whip Suzana Grubjesic said her party would not leave the government. Grubjesic told reporters in the parliament that G17 Plus would not think of leaving the government, but added that the question of whether that party should be in the government or not should be asked elsewhere.Asked to comment on statements that the Serbian Progressive Party may assist in adopting the agreement with Russia instead of G17 Plus, she said that, if the agreement on the sale of the Serbian Oil Industry arrives in parliament instead of the energy deal, G17 Plus would state its position.

SERBIA – BUDGET / ECONOMIC CRISIS

PM CVETKOVIC ANNOUNCES PROGRAM OF SUPPORT TO BUSINESS

BELGRADE, Dec 16 (Tanjug) - Prime Minister Cvetkovic said that the state will give maximum support to businesses so that the financial and economic crisis could be tackled as easily as possible, and pointed out that the government has prepared a corresponding program for this purpose. Speaking at a ceremony of awards for the best brands within the action "Best of Serbia," Cvetkovic said the proposed budget was both restrictive and stimulative - restrictive for the state and stimulative for the economy. "We need solidarity and unity, because all social groups will have to take party in the realization of the program," the prime minister said. The government will give an example, he said, but everyone will have to take on their share of the burden, without threatening others with their demands.

DEJANOVIC: MAJORITY OF MPS WANT BUDGET TO BE ADOPTED BY END OF YEAR

BELGRADE, Dec 16 (Tanjug) - Serbian parliament speaker Djukic Dejanovic told that a majority of the MPs opted for a more intensive work of the parliament, so that the budget law could be adopted by the end of the year. She said that, just like in all previous years, the deadline for the adoption of the budget had expired, and referred to the Monday statement by the finance minister "that it will not be the end of the world if we introduce temporary financing." "I would like us to get the budget by the end of the year, since this is a document which ensures the distribution of money in accordance with our possibilities and serves for the implementation of other laws. Temporary financing is a surrogate, but if we are to have no other choice, temporary financing it will be," Djukic Dejanovic said.

DINKIC: ALTAVILLA WILL SEND GUARANTEES BY THE END OF 2008

KRAGUJEVAC, Dec 15 (Tanjug) - Serbian Deputy Premier and Economic and Regional Development Minister - Mladjan Dinkic said in Kragujevac on Monday that Fiat Vice - President Alfred Altavilla had "strongly assured" him that the Turin car manufacturer is oriented towards cooperation with Zastava. Dinkic told reporters that Altavilla said he would confirm this orientation by the end of 2008 in a letter which, apart from the guarantees for the realization of the project, would define the range and scope of production in all Fiat branches worldwide, including that in Kragujevac. Dinkic said that until the start of production of the latest car model in the Kragujevac plant, it would conduct parallel activities for its modernization and continue the manufacture of the Punto model. Dinkic underscored that the announced contract between Fiat - Iveco and Zastava Kamioni truck manufacturer, would not be signed, because the Italian side has yet to decide to engage in this cooperation, despite the fact that a memorandum has already been signed.

SUTANOVAC: SLOWER PROFESSIONALIZATION OF ARMY

BELGRADE, Dec 15 (Tanjug) - Serbian Defence Minister Dragan Sutanovac said Monday that, due to the global financial crisis and the rationalization of Serbia’s budget, the professionalization of the Serbian Army (VS) would be slower, but would not be halted. "We intend to complete this process as soon as possible, as it is in the interest of the entire society, but its speed will be affected by the fact that the Defence Ministry will be getting much less than the guaranteed 2.4% of the gross social product," Sutanovac stated. He said that this is why "a serious policy" will have to be conducted next year in order to secure the better realization of "the master plan," in view of the considerable resources it envisages. Speaking before the Acadmy for Diplomacy and Security in Belgrade, Sutanovac told the press that, despite the extremely bad inheritance, he is satisfied with the current situation in the VS.

DRAGUTINOVIC EXPECTS BUDGET TO BE ADOPTED BY END OF 2008

BELGRADE, Dec 15 (Tanjug) - Serbian Finance Minister Diana Dragutinovic said the she hopes parliament would adopt the Serbian budget by the end of the year and that the debate on this issue would open in the middle of this week. Speaking about the possibility of temporary financing being introduced if the budget is not adopted on time, Dragutinovic told reporters that "this is the sole remaining solution," but that such a budget would be even more restrictive. Asked by the press to comment requests by certain companies for government aid due to the global economic crisis, Dragutinovic said that "no state, budget or finance minister can manage to help everyone," adding that the state’s budget is not limitless. "Funds have been earmarked, the criteria have been defined, so that I hope that the state will be able to help the majority, but no state can guarantee everything to everyone," she stated.

INDIA’S AMBASSADOR: CRISIS CHANCE FOR SERBIA

BELGRADE, Dec 16 (Tanjug) - India’s Ambassador to Serbia Ajay Swarup said in an interview for the Belgrade daily Vecenje Novosti published on Tuesday that Serbia and his country have shared friendly relations for decades, but that, unfortunately, the close political ties do not reflect themselves on the current economic relations.It is the very financial and global crisis that can give India and Serbia a chance to establish fruitful economic cooperation, Ambassador Swarup said. I think that the obstacles we have in expanding our economic cooperation are only of a psychological nature, he said. Ever since my arrival in Belgrade, and I have been here for more than two years now, I have been hearing people say that India is far away, that it is too big and that Serbia is unable to supply it with sufficient quantities of goods, India’s ambassador said. This is simply not true, and our market has the need for many of your goods, he said, adding that the businessmen from India who had already arrived in Serbia claimed that their doing business here had been easy because of the friendly atmosphere. The reason why the people from India are coming to Serbia is very simple - you have highly qualified experts and the goods that will be coming from India will be closer to the European market than if they arrive from India directly, the ambassador said. You also have some excellent institutes, and I would like to point in particular to Mihajlo Pupin, which has developed an excellent hardware and software computer system for electronic toll collection that we are very interested in, since we have begun intensive work on the construction of modern highways, Ambassador Swarup said.

SERBIA – EU

DJELIC CONGRATULATES MONTENEGRO ON CANDIDACY APPLICATION

BELGRADE, Dec 15 (Tanjug) - On behalf of the Serbian government, Deputy Prime Minister for European Integrations Bozidar Djelic congratulated Montenegro on submitting an application today for EU membership, Djelic’s cabinet said in a statement. In his letter addressed to Montenegrin Prime Minister Milo Djukanovic, Djelic underscored that this is an important event not only for Montenegro and its citizens but also for all countries of the Western Balkans. "Your submission of an application for the status of a candidate state for EU membership strengthens European prospects of the region as a whole," Djelic said.

DINKIC: LAW ENVISAGES SEVEN EURO-REGIONS IN SERBIA

KRAGUJEVAC, Dec 15 (Tanjug) - Deputy Prime Minister and Minister of Economy and Regional Development, Mladjan Dinkic, presented in Kragujevac a draft law on regional cooperation, which the Serbian parliament is supposed to adopt in the second quarter of next year. Dinkic pointed out that the bill represented an important document which envisaged, following the pattern of the EU member countries, that Serbia be divided into seven Euro-regions. The draft law also envisages the setting up of a national regional development agency with seven regional agencies, as well as a national council for regional development. Dinkic pointed to the fact that the bill had been drafted in keeping with the European regional policy standards, and that practice had shown that best results were achieved when decision making in respect to development projects was transferred onto the regional and local level.

SERBIA TO BECOME CANDIDATE FOR EU MEMBERSHIP BY END OF 2009

NOVI SAD, Dec 15 (Tanjug) - Serbian parliament Deputy Speaker Gordana Comic said Monday that despite expected difficulties, Serbia will become a candidate for EU membership and white Schengen list by the end of 2009. The current parliament session will be completed by the end of this year, and will be followed by another session which will debate the motion of no-confidence to the government and adopt the 2009 budget, she told a round table on support to Serbia’s endeavors for EU integration. Noting that the parliament only seems inefficient due to the slow process of law adoption, Comic said it is nevertheless committed to using democratic means to fight undemocratic behavior. Head of the Serbian Government Office for EU Integration Milica Delevic pointed to the advantages the unilateral implementation of the interim trade agreement with the EU in 2009 will bring to the people, and said that it would improve competitiveness of Serbian companies. 2009 will be the year in which integration in Europe will be the focus of attention in Serbia, she said.

KOJA: DECISION ON CANDIDATE STATUS IN NEXT FEW MONTHS

NOVI SAD, Dec 16 (Beta) - Austrian Ambassador to Belgrade Klemens Koja said on Dec. 15 in Novi Sad that it would be decided in the next few months whether Serbia will be granted candidate country status for European Union membership. "In any case, there will be lots of work for both sides, but I am an optimist and I think that an agreement will be reached next year on the abolition of visas for Serbian citizens," Koja said at a conference entitled "Serbia in the European Integration Process," held at Novi Sad Town Hall, in the presence of republican, city and provincial authorities. Koja added that the support of EU countries for Serbia in the European integration process had not changed and that it is very important because the Stabilization and Association Agreement has been signed. He recalled that in the entire European integration process, cooperation with the Hague tribunal is one of the most important aspects and in that way all 27 EU member countries must be convinced that Serbia is ready for European integration. Milica Delevic, director of the Serbian government’s Office for European Integration, said that this was one of a series of conferences which the institution and the European movement in Serbia are organizing in support of informing citizens and those who will decide at the local level on the European integration process.

EU: CONSENSUS NOT REQUIRED FOR INTERIM TRADE AGREEMENT

BELGRADE, Dec 16 (Beta) -Member countries of the EU do not have to unanimously reach a decision on the implementation of the interim trade agreement with Serbia, Christian Mandl, a representative of the Austrian Chamber of Commerce, has said. "EU members can accept the implementation of the interim trade agreement with Serbia through a qualified majority," he said at a meeting with the Serbian Chamber of Commerce’s section for Austria. Mandl is the director of the Austrian Ch of Comm’s EU Policy Coordination Department. He stated that once the interim trade agreement goes into effect, EU members will no longer be able to increase customs duties on goods from Serbia. Mandl added that the EU currently does not charge customs duties on industrial and agricultural products from Serbia, but that there is no legal obligation to do so and customs charges can be introduced at any time.

SERBIA – EULEX

JEREMIC: OPENING OF EULEX OFFICE IN BELGRADE NOT DISCUSSED

BELGRADE, Dec 16 (Beta) - Foreign Minister Vuk Jeremic said that the opening of an EULEX office in Belgrade had not yet been discussed, but that he saw no obstacles to it. Jeremic told journalists at the parliament that talks between Serbia and the EU were underway on the implementation of the sixpoint plan by U.N. SG Ban Kimoon, which received full support from the UN SC."We are cooperating with the European mission. At which point the possible formalization of the presence of EULEX in Belgrade will take place is not something we discussed. I see no problems for this happening when the time comes and when the level of our cooperation demands it," Jeremic said in response to a Dec. 14 statement by EULEX head Yves de Kermabon that an EULEX office would open in Belgrade very soon. I believe that EULEX will soon have an office in Belgrade. Bearing in mind that the mission is a technical one, we will need ties to all neighboring countries so that we can work together outside Kosovo, for example in Europol, Interpol and so on, Kermabon said during a Dec. 14 visit to the Pec Patriarchate. Ruling coalition representatives in the Serbian Parliament said on Dec. 15 that the opening of an EULEX office in Belgrade would provide better communication between Serbia and the EU mission. However, Serbian Radical Party whip Dragan Todorovic told journalists that the announced opening of the EULEX office in Belgrade was "confirmation of the occupation" of Kosovo and Metohija. According to Forward Serbia whip Tomislav Nikolic, the announced opening of an EULEX office in Belgrade could be interpreted in two ways."It can be interpreted as the headquarters in the Republic of Serbia in charge of the mission in Kosovo, but some may maliciously interpret that EULEX will deploy throughout Serbia," Nikolic told journalists in the parliament.

BOGDANOVIC SAYS MISSION MUST IMPLEMENT AGREEMENT

BELGRADE, Dec 16 (Tanjug) - Minister for Kosovo and Metohija Goran Bogdanovic said in an interview for the Belgrade daily Politika published on Tuesday that he is not very surprised at the statement by European Union (EU) mission EULEX Spokesman Victor Reuter, who said on the day of the deployment of EULEX that the six-point plan, about which Belgrade has agreed with the United Nations (UN), is a political issue which will be handled by the authorities in Belgrade and Pristina, and UN mission UNMIK Chief Lamberto Zannier. Such a statement is probably a consequence of the pressures EULEX is taking from Kosovo Albanians, Bogdanovic said, but Belgrade "will not accept different interpretations of things which are absolutely clear and which have been agreed with the UN." EULEX will realize what has been agreed with the UN within the framework of the UN and respecting Security Council Resolution 1244 and status neutrality, he said. "That is the obligation they were given by the Security Council and which is listed in the Presidential Statement," Minister Bogdanovic said.

LIMDAL: EULEX MISSION IS STATUS NEUTRAL

PRISTINA, Dec 15 (Tanjug) - Spokesperson for EULEX Karen Limdal told that the European Union mission in Kosovo is status neutral, recalling that the mission represents all of the 27 EU member states and that five of them had not recognized Kosovo’s independence. Clarifying the statement made by EULEX Chief Yves De Kermabon to journalists in Pec on Sunday, Limdal said that by announcing the opening of an office in Belgrade and urging for good relations with the neighboring countries Kermabon did not imply that Serbia is Kosovo’s neighbor. According to her, De Kermabon implied countries such as Albania and Macedonia. When asked whether EULEX believes that Serbia is Kosovo’s neighbor, Limdal replied that this was not the case, underscoring that EULEX does not take stands in regards to Kosovo’s independence. You know that EU member states have a stand but we don’t, since we represent all of the 27 member states, said Limdal. We do not have a stand on the issue, we are status neutral, she underscored. She could not specify the exact date of the opening of an office in Belgrade or what its competencies would be, but she underlined that the office will not address political issues.

DE KERMABON: STATUS ISN’T ISSUE OF EULEX, BUT OF EU STATES

BELGRADE, Dec 16 (Beta) - In an interview with daily Danas, EULEX chief Yves de Kermabon said the EU mission was "technical" and was not involved in issues concerning Kosovo’s status, because, as he explained, status "is an issue of each member of the EU individually.""The legal basis of the mission is "Joint Action," a document passed by the 27 members of the EU, including those states that have not recognized the independence of Kosovo," De Kermabon told the daily.He added that UNMIK was responsible for the six points, which the U.N. and Belgrade had agreed upon.Asked whether he had established contact with Belgrade after Serbia accepted EULEX, De Kermabon replied that he was ready for the talks."The rule of law requires technical cooperation. Contact with Belgrade is absolutely necessary, just as it with Skopje. The same applies for contacts with international institutions dealing with the rule of law such as Europol, Eurojust or Interpol," he told.

SERBIA

SERBIA & BADEN-WURTEMBERG TO FOSTER COOPERATION

STUTTGART, Dec 15 (Tanjug) – President Tadic and Baden-Wurtemberg Prime Minister Gunther Ettinger signed a joint statement on fostering cooperation in all sectors. Germany is Serbia’s leading bilateral partner in the EU and a great ally as regards integration in Europe, Tadic said. The statement signed will help foster cooperation particularly in the economy, science, and education sectors, he said. During his one-day visit to Baden-Wurtemberg, Tadic also visited the Porsche industry and conferred with its President Wendelin Wiedeking. Serbia does not expect Posche vehicles to be manufactured in its territory, but intends to encourage investments in the automobile industry, he said.

DACIC CONFIDENT GOVERNMENT WILL NOT FALL

BELGRADE, Dec 16 (Tanjug) - Deputy Prime Minister Ivica Dacic has said that he believes the government will not fall, and that he is certain some parties will show understanding if it is necessary for the government to continue in the current composition for the sake of state and national interests. "Since Nikolic now has a more open stand toward the Democratic Party it is then possible to expect certain political agreements on that side. However, irrespective of that, I believe it is too early for such a move and I do not expect such a possibility before some new elections," Dacic said for Vecernje novosti. Provided the DP does not have a problem with Nikolic’s minority support to the government, the SPS would not be likely to have any objections. "We were not the ones who said we would not side with them while they were in the Radical party. Nor did we claim that we would not side with Tadic. Therefore, if they now see that they can be together, why would we have any objections. However, that is a less good possibility than the continuation of the current govenment,".

SUTANOVAC: PEACEKEEPING OPERATIONS TO IMPROVE OUR POSITION

BELGRADE, Dec 16 (Tanjug) - Defence Minister Dragan Sutanovac assessed on Tuesday that members of the Serbian Army (VS) should take a more active part, in cooperation with other friendly countries, in the UN peacekeeping missions around the world. Opening a conference entitled "Security and the Society," Sutanovac said it would be important to do that if we wanted the Serbian Army to become an important foreign policy factor of our state, which would be recognised in the world. He said that presently, Serbia was taking part in three peacekeeping missions in Africa, which were under UN mandate. He said that Serbia’s membership in the NATO Partnership for Peace programme represented a sufficient frame for cooperation with the Alliance, pointing out, however, that very soon Serbia would represent an isolated island surrounded by the countries that had already joined NATO. Sutanovac said that the Serbian Army shared partnership relations with 44 countries, both the ones that were members of NATO and those that were not, as well as with Russia and China.

AUSTRIAN ATTACHE: AUSTRIA LEADING INVESTOR

BELGRADE, Dec 15 (Tanjug) - Austria is the biggest investor in Serbia and, since 2000, the Austrians have invested almost two billion euros, trade attache in the Austrian embassy in Belgrade, Andreas Haidenthaler, said on Monday. Haidenthaler said that in 2000 there were only 40 Austrian companies in Serbia, while now this figure has reached 280 with about 20,000 new jobs in Serbia resulting from this. Speaking about economic cooepration between the two countries, Haidenthaler said that in the past years Austrian exports to Serbia recorded a strong growth, and that Serbia’s exports to Austria are on the rise. For further information:

Minister of Foreign Affairs of Serbia