Minister for Foreign Affairs of Serbia: daily survey of 18 February 2009

REPUBLIC OF SERBIA - MINISTRY FOR FOREIGN AFFAIRS

 TRADE BETWEEN SERBIA, GERMANY INCREASES IN 2008

SERBIA - UN

UN DETERMINED TO CONTINUE IMPLEMENTATION OF PLAN

NEW YORK, Feb 18 (Tanjug) - United Nations (UN) Secretary-General Ban Ki-moon confirmed on Tuesday evening, during a meeting with Serbian Foreign Minister Vuk Jeremic, that the UN is determined to continue cooperating with Belgrade on the implementation of the six-point plan on Kosovo. Ban and Jeremic conferred on the continued cooperation between Serbia and the UN Mission in Kosovo, said a statement by the Office of the UN Secretary-General received by Tanjug. The six points from Ban’s plan regulate the position of Serbs in areas in Kosovo where they make up the majority population, and pertain to the police, judiciary, collecting off customs tax, transportation, infrastructure, and protection of the Serbian cultural heritage. Ahead of the meeting, Jeremic said he would convey to the UN secretary-general dissatisfaction over the delay in the implementation of the six-point plan on Kosovo. The Serbian minister pointed out that Serbia expects the onset of the implementation of this plan as soon as possible, and warned against the possibility of a serious security crisis breaking out in the event that the plan is not realized in the field.

JEREMIC SEES CRISIS IF PLAN IS NOT IMPLEMENTED

NEW YORK, 17 Feb. (Beta) - Foreign Minister Vuk Jeremic warned on Feb. 17 of a possible serious security crisis if the six point plan for Kosovo is not implemented. Jeremic, who met with U.N. Secretary General Ban Ki-moon in New York, said he expects the implementation of the plan to start. "Some elements of the plan are already being implemented, while other elements are running late," Jeremic said, adding that he conveyed Belgrade’s dissatisfaction with the delay to Ban Ki-moon. Talks on the plan, Jeremic added, will continue on Feb. 19 when UNMIK chief Lamberto Zanier is scheduled to arrive in Belgrade. Jeremic said that "it is exceptionally important that there is no vacuum in the province." "If this plan is not implemented, if what the Security Council approved is not implemented on the ground, we will have a strong security crisis," Jeremic said. The Serbian minister voiced his concern over the situation in Kosovo and said that he will seek that a U.N. Security Council session be scheduled as soon as possible. The session is expected in the first part of March. Commenting on Pristina’s opposition to the six point plan, Jeremic said that Serbia will invest "every diplomatic effort" together with its allies to get all parties, including Pristina, to honor the Security Council’s resolutions. Jeremic added that Serbia is investing efforts to prevent any new recognitions of Kosovo. The six point plan is supposed to give Kosovo Serbs broader autonomy in the areas of justice, police and customs, and better protection of cultural and religious sites, as well as better transportation and telecommunications.

SERBIA

TADIC: SERBIA FOR REALIZATION OF JOINT PROJECTS WITH RUSSIA

BELGRADE, Feb 17 (Tanjug) - Serbian President Boris Tadic said in an interview for the Russian news agency Itar-Tass on Tuesday that Serbia is ready for the realization of the two agreed joint projects with Russia, and pointed out that it is very important, in this year of great financial difficulties, to consider possibilities for mutual financial support. "I’m very glad that Serbia as a country situated on the way of delivery of Russian energy resources to end consumers is in the centre of this (South Stream) project," Tadic told Itar-Tass. Consequently, Tadic said, Serbia can "base its economy, industrial development on the supplies, transit and storage of natural gas" through these parts. Pointing out that Serbia and Russia are facing the onset of work of a joint company of NIS and Gazprom, and the realization of an energy project of continental significance, the construction of the South Stream gas pipeline, Tadic stressed the importance of considering possibilities for mutual assistance, financial assistance, and assistance in international financial institutions. Naturally, Tadic said, "the potential of Serbia in this regard is much smaller than Russia’s, but we hope that Russia will again support us if necessary - as it had done before." The Serbian president was asked whether his country needs to address Russia for assistance in the area of finances alone. "We are attentively analysing on the daily basis the economic situation. The nature of the present crisis is changeable as a mutating virus," Tadic said. "Depending on the demand we will make a decision if we need financial aid. Of course, many will depend on the current situation in Russia’s Central Bank. The question remains open so far," Itar-Tass quoted the Serbian president as saying.

TADIC: SERBIA OPEN TO MILITARY-TECHNICAL COOPERATION WITH RUSSIA

MOSCOW, Feb 17 (Tanjug) - Serbian President Boris Tadic pointed, in an interview with Itar-Tass on Tuesday, to the importance of military and technical cooperation between Serbia and Russia, and underlined that Belgrade was open to cooperation in that field. We are a transparent military force with a transparent manner in which we modernize and improve the quality of our equipment and weaponry. Serbia is a respectable democracy in the international sense of that word, in which armed forces are under civil control, and we have absolutely nothing to hide, Tadic said. We are open to cooperation in this field, the Serbian president stressed. Pointing out that modernisation was of vital interest for the Serbian armed forces, he said that certain launched projects had already been completed, such as the repair and re-equipment of the MiG-29 fighters, but that some of them, like those referring to combat helicopters, were still waiting to be accomplished. The Serbian president pointed to the fact that in spite of its huge financial and technical difficulties, Serbia had made a giant step forward in terms of technology. We now manufacture respectable weapons in the domain of artillery, some of them, of course, in cooperation with other countries, but last year Serbia managed to finalized the construction of training aircraft Lasta, which has made it possible for our airforce to regain its importance, Tadic said. He reminded that Serbia had also constructed an armored vehicle Lazar of huge potential.

TADIC MEETS WITH MEMBERS OF SERBIA’S LEGAL TEAM

BELGRADE, 17 Feb. (Beta) - President Boris Tadic on Feb. 17 spoke with members of the legal team representing Serbia before the International Court of Justice, which is to deliver an advisory opinion on the legality of Kosovo’s unilateral declaration of independence, the president’s press service announced. At the meeting, Tadic reiterated that "Kosovo is not a state" one year after it proclaimed independence illegally and made it clear that Serbia will never recognize it. According to him, Serbia considers Feb. 17, 2008 the day when officials in Pristina declared independence in opposition to international law. "We remain firmly committed to defending our legitimate rights on our own territory by legal and diplomatic means, not force. Abiding by international law, Serbia will defend its own legitimate interests and its integrity in Kosovo in the legal domain before the International Court of Justice," Tadic said. Responding to a Serbian initiative, the U.N. General Assembly in October 2008 asked the International Court of Justice for an advisory opinion on the legality of Kosovo’s actions. "Is the unilateral declaration of independence by the provisional institutions of selfgovernment in Kosovo in accordance with international law?" is the question before the international court. The court has called on all states in possession of relevant information on the issue to take part in the proceedings. Interested countries may submit written statements by April 17, 2009, while they will be able to rebut the written statements from other countries until July 17, 2009.

CVETKOVIC AGAINST VIRTUAL STATE ON SERBIAN TERRITORY

BELGRADE, 17 Feb. (Beta) - Prime Minister Mirko Cvetkovic said on Feb. 17 that Serbia will never recognize the intentions of the interim Kosovo Albanian leadership to create a virtual state on Serbian territory. In a statement delivered to BETA, Cvetkovic said the government insists that the problem of Kosovo, Serbia’s biggest state and national issue, be resolved in accordance with international law, adding that Serbia will never recognize the illegal acts of the interim leadership of Kosovo. "The unity and solidarity of all political and economic forces in Serbia is necessary to solve the problems in Kosovo and Metohija." Cvetkovic pointed out. Serbia’s prime minister urged all citizens of Kosovo and Metohija to refrain from violence and not give in to provocation by extremists, but to turn to peace and building a better future. Cvetkovic added that "relations between Serbs and Albanians in the southern Serbian province must be improved through dialog," in accordance with the constitution of Serbia and with regard to the interest of longterm peace, stability and creating better living conditions for citizens in Kosovo and Metohija. "The government of Serbia has seen to it that the issue of Kosovo’s illegal proclamation of independence appears before the International Court of Justice. With serious diplomatic action, the government is preventing the recognition of this illegal action," Cvetkovic stressed. He added that the government is striving to preserve international legal order, as this is conducive to the longterm stability in the entire region. The prime minister emphasized that conditions must be created to make possible the return of more than 200,000 people who were driven from their homes and property in Kosovo.

PARLIAMENT SPEAKER EXPECTS MORE EFFICIENT WORK

BELGRADE, Feb 17 (Tanjug) - Serbian parliament speaker Slavica Djukic-Dejanovic said on Tuesday that the adopted amendments to the Rules of Procedure would ensure that parliament was more efficient and not waste time in future. "The amendments should result in more efficiency and the new Rules of Procedure which should result from the (forthcoming) law on parliament should result in a selection of documents on the agenda of the first regular session in March," Djukic-Dejanovic told Tanjug in an interview. Djukic-Dejanovic said that the amendments, which were adopted on Tuesday, would prevent MPs from blocking the parliament’s work for three or four days. She said, however, that she expected that obstructions would continue, but that there would be far less technical opportunities for abuse. Djukic-Dejanovic added that the objection that she was too tolerant at sessions came mostly from the parliamentary majority, although she had always thought about the consequences that would result from sanctions whenever she used the Rules of Procedure. She believes that early elections are not necessary despite more frequent requests to call them because the way out of the current situation was seen in them. "The results of some new elections would not be significantly different than the ones we presently have and I think that this would deprive Serbia of energy it needs to gather strength, find conditions for a better economic life and preserve jobs," Djukic-Dejanovic said. "On the other hand, those in authority will have to demonstrate even more energy, cooperation and creativity because we need this at these times," she said. Djukic-Dejanovic said that the government’s program for the alleviation of the economic crisis would arrive at parliament soon.

LJAJIC CONFIDENT EFFORTS WILL YIELD RESULTS

NIS, Feb 18 (Tanjug) - President Rasim Ljajic of the National Council for Cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) in The Hague said in Nis on Wednesday that he is confident "the serious efforts aimed at locating the remaining two indictees will yield results" and lead to the extraditions of Ratko Mladic and Goran Hadzic to that court. "We have more information than before, the work is better than before, but it is difficult to say at this point whether that will be enough," Ljajic told reporters. Asked what he expects from today’s meeting of ICTY Chief Prosecutor Serge Brammertz and the ambassadors of European Union (EU) member-states, Ljajic said he expects "that Brammertz will reiterate the stands presented in his report to the United Nations Security Council in December 2008." Brammertz "will conclude there is progress in Serbia’s cooperation, that there is a clearly demonstrated political readiness to fulfill Serbia’s remaining obligations, and he will conclude, naturally, that Mladic is not in The Hague," Ljajic said. "Mladic’s absence in The Hague is an argument that The Netherlands is using to equate full cooperation with Mladic in The Hague. We believe that is unjust and incorrect and that Serbia has done everything to fulfill its remaining obligations," Ljajic said.

SUTANOVAC: SERBIA DETERMINED TO PROTECT SOVEREIGNTY

BELGRADE, Feb 18 (Tanjug) - Serbian Defence Minister Dragan Sutanovac stated that Serbia is determined to protect its sovereignty, territorial integrity and safety and to consistently honor the constitutional provision that Kosovo and Metohija is its integral part. "In that sense Serbia is advocating the strengthening of the role of the UN and creation of secure mechanisms of common safety, and it is prepared to strengthen its own security by engaging in Europe’s security and defence policy and participating in NATO Partnership for Peace program," said Sutanovac in an interview for the Thursday edition of the weekly Vreme. He pointed out that Serbia does not see any country or union as an enemy and that its decision is to contribute, together with other countries, to the strengthening of global, regional and national security.

SERBIAN INTERIOR MINISTRY, FRONTEX SIGN COOPERATION DEAL BELGRADE, 17 Feb. (Beta) - The Serbian Interior Ministry and Frontex, the European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union, on Feb. 17 signed a working cooperation arrangement. Serbian Interior Minister Ivica Dacic told a news conference after the signing that this arrangement is an important step toward liberalizing the visa regime and Serbia’s European integration. Dacic said the goal of the deal is joint action against crossborder crime, the prevention of illegal migration and better and more efficient border control. He said border police officers will be able to rely on the experience of Frontex in border protection and will be trained according to the standards of that agency. Dacic recalled that Serbia is currently modernizing its border police and rolling out a unified information system. Frontex executive director Ilkka Laitinen said the agreement also envisages a series of joint activities at border crossings, adding that Frontex will make its training curriculum available to the Serbian Interior Ministry.

DACIC: POLICE ATTACHES IN EMBASSIES AND CONSULATES

BELGRADE, Feb 18 (Tanjug) - Serbian Interior Minister Ivica Dacic announced on Wednesday that Serbian liaison officers could soon be deployed in Serbia’s diplomatic-consular representative offices all over the world. "The drafting of an agreement with the Foreign Ministry is under way, so that our police attaches could be deployed in embassies and consulates throughout the world," Dacic said after a meeting with liaison officers of foreign embassies in Serbia. The officers will have the task to carry out political work, to be liaison officers between the police forces of Serbia and the respective states, Dacic said. The post of police attaché is being introduced in Serbia for the first time, the interior minister specified.

KOSOVO AND METOHIJA – SITUATION, REACTIONS

CVETKOVIC AGAINST VIRTUAL STATE ON SERBIAN TERRITORY

BELGRADE, 17 Feb. (Beta) - Prime Minister Mirko Cvetkovic said on Feb. 17 that Serbia will never recognize the intentions of the interim Kosovo Albanian leadership to create a virtual state on Serbian territory. In a statement delivered to BETA, Cvetkovic said the government insists that the problem of Kosovo, Serbia’s biggest state and national issue, be resolved in accordance with international law, adding that Serbia will never recognize the illegal acts of the interim leadership of Kosovo. "The unity and solidarity of all political and economic forces in Serbia is necessary to solve the problems in Kosovo and Metohija." Cvetkovic pointed out. Serbia’s prime minister urged all citizens of Kosovo and Metohija to refrain from violence and not give in to provocation by extremists, but to turn to peace and building a better future. Cvetkovic added that "relations between Serbs and Albanians in the southern Serbian province must be improved through dialog," in accordance with the constitution of Serbia and with regard to the interest of longterm peace, stability and creating better living conditions for citizens in Kosovo and Metohija. "The government of Serbia has seen to it that the issue of Kosovo’s illegal proclamation of independence appears before the International Court of Justice. With serious diplomatic action, the government is preventing the recognition of this illegal action," Cvetkovic stressed. He added that the government is striving to preserve international legal order, as this is conducive to the longterm stability in the entire region. The prime minister emphasized that conditions must be created to make possible the return of more than 200,000 people who were driven from their homes and property in Kosovo.

TADIC: RUSSIA’S POSITION TO BE GREATLY APPRECIATED

BELGRADE, Feb 17 (Tanjug) - Russia has played and continues to play a crucial role in the resolution of the Kosovo issue, Serbian President Boris Tadic said on Tuesday, adding that the efforts Moscow was making in that effect deserved the deepest possible appreciation of Serbia. During the debate on Kosovo and Metohija, Russia assumed a principled position on all occasions, which, as a participant of a number of UN Security Council sessions, I can prove, Tadic said in an interview for Itar-Tass, and reiterate that Serbia would never recognize Kosovo’s independence. I highly value such a principled position, Russia’s contribution to the resolution of a number of international policy issues, including the ones that deal with conflict resolution, the Serbian president told the Russian national news agency. Speaking about the activities of the European Union Rule and Law Mission in Kosovo (EULEX) and the ceremonies that will be held today on the occasion of the first anniversary of the unilateral proclamation of Kosovo independence, Tadic said that one should bear in mind the principled stand which could not be subject to any consideration - that Serbia would never acknowledge the independence of Kosovo and Metohija. He reminded that EULEX had been deployed in keeping with a corresponding decision of the UN Security Council, a body which had legalized the presence of that mission, as well as the presence of the UN Mission in Kosovo (UNMIK) and KFOR, and added that all of those missions had clearly defined tasks. Furthermore, the UN Security Council decision clearly says that Serbia is their key partner, Tadic pointed out, expressing huge gratitude to Russia for the principled position it had assumed in the drafting and the adoption of all the decisions in that respect

BOGDANOVIC SAYS PURPOSE OF TALKS TO CHANGE HARSH REALITY

ZVECAN, 17 Feb. (Beta) - Minister for Kosovo and Metohija Goran Bogdanovic said in Zvecan on Feb. 17 that Serbia is ready to discuss the U.N. sixpoint plan "which has the goal of changing Kosovo’s dire reality." "The negotiations on the plan have are meant to change Kosovo’s dire reality. Serbia is ready for talks and agreements and this will be a long and arduous process full of trials," Bogdanovic said at a Union of Municipalities of Kosovo and Metohija assembly session held on the anniversary of Kosovo’s declaration of independence in Parliament. The session was attended by opposition MPs. Bogdanovic said that "Serbia’s objective is to enable people to live without fear and in peace, to live dignified lives." The minister added that it is important for Serbia to become economically stronger because this will help it solve the problem of Kosovo. He recalled that Kosovo’s selfstyled independence is a precedent and violation of international law, U.N. Resolution 1244 and the U.N. Charter that has caused instability, tensions and fear among Serbs and nonAlbanians. "We do not desire clashes, the Albanians must know that our two communities depend on each other and that this is why the reconciliation process must start," Bogdanovic said. Serbian Radical Party whip Dragan Todorovic said that the Zvecan declaration will show that neither Serbia nor Serbs will ever reconcile themselves to the appropriation of Kosovo and Metohija. Democratic Party of Serbia MP Slobodan Samardzic said that the state needs to work on making Serbian institutions in Kosovo stronger because this will help Serbs stay there. New Serbia deputy whip Miroslav Markicevic voiced his party’s support for Serbs in Kosovo and thanked them for not waging a struggle solely for themselves but for fighting for the preservation of Serbia’s integrity as well. Serbian Radical Party MP Ljubomir Kragovic said that international officials are being unjust about the Kosovo issue. Community vice president Marko Jaksic called on Serbian Parliament Speaker Slavica Djukic to hold Parliament’s first spring session in Kosovo and Metohija. The session, which was attended by Democratic Party of Serbia, Serbian Radical Party, New Serbia and Serbian Progressive Party MPs in Parliament, was intended to encourage Kosovo Serbs to persevere in their struggle to preserve the country’s territorial integrity and sovereignty. Letters from Democratic Party of Serbia leader Vojislav Kostunica, New Serbia leader Velimir Ilic and Serbian Radical Party leader Vojislav Seselj were also read at the session. Speaking for Serbian Orthodox Church Patriarch Pavle, Bishop Amfilohije voiced his support for Serbs in Kosovo. The Union of Municipalities of Kosovo and Metohija adopted a declaration confirming Kosovo’s constitutional position within Serbia and rejecting all unilateral and "separatist acts" on the part of Pristina.

DECLARATION ON INDEPENDENCE REJECTION ADOPTED

ZVECAN, Feb 17 (Tanjug) - Delegates of the Assembly of the Union of Serb Municipalities in Kosovo and Metohija unanimously adopted in Zvecan today a Declaration on confirmation of the constitutional status of Kosovo and Metohija in the Republic of Serbia and rejection of all unilateral and separatist acts on the Province’s independence by provisional institutions in Pristina. Under the Constitution of the Republic of Serbia and in keeping with UN Security Council Resolution 1244, the United Nations Charter, Helsinki Final Act and other binding legal acts, the Autonomous Province of Kosovo and Metohija is part of a single and inseparable territory of the sovereign state of Serbia, the Declaration reads. It is also underscored that the Assembly of the Union of Serb Municipalities in Kosovo and Metohija rejects all acts and actions unilaterally proclaiming independence of Kosovo and Metohija, forming institutions of a quasi-state of Kosovo, as nonexistent and without any legal validity. The Assembly does not recognize and rejects all decisions by the provisional organs of the self-government in Kosovo-Metohija on setting up of the Kosovo Security Forces, because those decisions are contrary to the Constitution of Serbia and UN Security Council Resolution 1244. The Assembly of the Union of Serb Municipalities in Kosovo and Metohija demands from the Serbian government to file with the International Court of Justice lawsuits against the state that had recognized the illegal proclamation of unilateral independence of Kosovo, thus violating the binding norms of international law, particularly the UN Charter, Helsinki Final Act, UN Security Council Resolution 1244 of June 10, 1999, and other acts. The Assembly appeals to the Serbian government to request an urgent session of the UN Security Council, which is keeping with Resolution 1244, to annul the decision on deployment of the EU mission (EULEX) in Kosovo and Metohija, because it is, contrary to the Security Council decision, implementing Martti Ahtisaari’s plan, which had not been approved by the UN Security Council. The Assembly also requests all institutions in Serbia to communicate on all issues regarding Kosovo and Metohija only with UNMIK and KFOR, as the only legitimate U.N. missions in the Province.

THACI WOULD GO TO BELGRADE IN INTEREST OF THE TWO NATIONS

PRISTINA, Feb 17 (Tanjug) - Kosovo Premier Hashim Thaci has said that he would go to Belgrade to meet with the Serbian president and premier, Boris Tadic and Mirko Cvetkovic respectively, if this were beneficial for both countries. If we had topics to discuss for the benefit of both our countries, I would go to Belgrade, but Belgrade should change its policy on Kosovo and to distance itself from the policy of Slobodan Milosevic, Thaci told Pristina daily Koha Ditore. According to Thaci, Belgrade is conducting two policies - a proeuropean one, for integrations into the EU and NATO, and the Kosovo policy which does not differ from that of Slobodan Milosevic. Asked whether he would meet with Belgrade representatives with international guarantees, Thaci said that Belgrade’s position on him is well-known, but that he would agree to meet with representatives of Belgrade on condition that Belgrade accepts Ahtisaari’s plan and that he meets with the Serbian and president and premier.

FEITH: UNREALISTIC TO EXPECT NEW TALKS ON KOSOVO STATUS

COLOGNE, Feb 17 (Tanjug) - International Civilian Representative for Kosovo and European Union (EU) Special Representative Pieter Feith said on Tuesday that it is not realistic to expect new negotiations on the status of Kosovo. Feith said it would not be realistic to believe the Kosovo authorities would be ready again to negotiate the issue of status. It would be possible to discuss numerous technical issues, without any prejudice regarding Serbia’s stand on the issue of the status of Kosovo, Feith told Radio Deutsche Welle. It would be good if the talks between Belgrade and Pristina would be a kind of construction over what the United Nations has built so far, he said, and stressed that the EU should take part in these talks to provide support. It is very important to see how Belgrade will decide to continue behaving in connection with Kosovo. Belgrade is facing the task to weigh its stand on Kosovo and its stand on the European future of Serbia, the EU SR in Kosovo said.

SERBIA – ECONOMY, FINANCE

SOCIAL, ECONOMIC COUNCIL SUPPORTS SERBIAN GOVT MEASURES

BELGRADE, Feb 17 (Tanjug) - At a session of the Social and Economic Council, social partners on Tuesday unanimously supported the government package of measures aimed at overcoming the economic crisis and said that in order for them to succeed, the implementation needed to be monitored and adjustments to new circumstances needed to be made, the Council said in a statement. Serbian Minister of Economy and Regional Development Mladjan Dinkic presented the measures to the Council, aimed at overcoming the crisis more easily and preserving the human and physical resources, and the session was also attended by Serbian Prime Minister Mirko Cvetkovic. The specific goals of the measures are to ensure the appropriate liquidity, reduce the costs of operation, preservation of jobs and competitiveness of the domestic economy on the foreign market. Serbian Minister of Labour and Social Policy Rasim Ljajic informed the Council that a package of measures was in preparation, which should help protect the most threatened categories of the population at the time of crisis, which would also be found at the session of the Social and Economic Council, the statement said.

SERBIA’S PUBLIC DEBT 8.95 BILLION EUROS AT END OF JANUARY

BELGRADE, Feb 17 (Tanjug) - Serbia’s public debt at the end of January was 8.95 billion euros, which is 165 million euros up on the end of 2008, the Finance Ministry has announced. This means that Serbia’s public debt at the end of January was 25.2 % of the Gross Domestic Product (GDP). Serbia’s overall direct obligations at the end of January were 7.99 billion euros, of which its foreign debt was 4.85 billion and the domestic debt 3.14 billion euros, the Finance Ministry announced on its Internet site. Serbia’s indirect obligations amounted to 953.2 million euros. At the end of 2007, Serbia’s overall public debt was 8.88 billion euros, which amounted to 29.4% of the then GDP.

TALKS ON EUR300 MILLION LOAN FOR SERBIAN RAILWAY COMPANY

BELGRADE, 17 Feb. (Beta) - State rail company Zeleznice Srbije on Feb. 17 announced that the Czech Republic is planning to provide it with a loan worth EUR300 million for the modernization of railroads along Corridor 10. So far a preliminary agreement has been signed and if it is finalized, the money will be made available in 2010. The funds would be spend on upgrading the Belgrade-Kovacevac, Rakovica-Jajinci-Mala Krsna-Velika Plana and Nis-Ristovac-Presevo-Macedonian border railway segments. Representatives of Zeleznice Srbije and a consortium of Czech companies, formed to pursue projects related to Corridor 10, held talks on the matter last week. According to the news release, the negotiations also included representatives of the Serbian ministries of infrastructure, finance and economy, as well as Czech companies, the Czech Foreign Ministry and the country’s embassy in Belgrade. Infrastructure Minister Milutin Mrkonjic earlier said that EUR220 million will be spent on Corridor 10 railway modernization this year. Serbia’s 2009 budget includes guarantees for EUR342 million in foreign loans to Zeleznice Srbije, as well as US$80 million for the reconstruction and modernization of railroads and the purchase of railway cars and engines.

TRADE BETWEEN SERBIA, GERMANY INCREASES IN 2008

BELGRADE, 17 Feb. (Beta) - Trade between Serbia and Germany amounted to EUR2.6 billion last year, up 14 percent year-on-year, the Serbian Chamber of Commerce announced on Feb. 17. In 2008, Serbia exported goods and services worth EUR772.6 million to Germany, 13 percent more than the previous year, whereas German exports to Serbia increased by 14.5 percent to EUR1.83 billion. Overall, Serbia had a EUR1.1 billion trade deficit with Germany. Germany was Serbia’s number three export partner, behind Bosnia-Herzegovina and Montenegro, and second only to Russia in terms of exports to Serbia. According to the Serbian Statistics Bureau, Serbia’s foreign trade totaled EUR23 billion in 2008, a year-on-year rise of 15.4. At the same time the trade deficit rose 15.2 percent to EUR8.2 billion. Serbia’s top imports are crude oil, natural gas, gas oil, cars, and coke, while its most exported goods are men’s clothing, corn, train and tram cars, refined sugar, and rolled tin coated products.

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Minister for Foreign Affairs of Serbia