A doubtful Serbia's "'Gas Diplomacy" during crisis
14. January 2009. | 08:16
Source: Radio Free Europe, Blic
The Serbian capital, Belgrade, has received emergency supplies of natural gas from Hungary and Germany to help it cope with its dependence on Russian gas, which has been cut off for several days.Belgrade citizens have welcomed the help but have widely criticized the manner in which President Boris Tadic has handled the crisis.
The Serbian capital, Belgrade, has received emergency supplies of natural gas from Hungary and Germany to help it cope with its dependence on Russian gas, which has been cut off for several days.
Belgrade was first sent emergency supplies by Hungary and was later promised additional assistance from Germany as the city tries to keep homes heated during a bout of cold weather.
Belgrade citizens have welcomed the help but have widely criticized the manner in which President Boris Tadic has handled the crisis.
Tadic presented the Hungarian gas assistance on public television as his own personal achievement and, on January 8, Serbia's prime-time news program was interrupted by a statement from Tadic that he had "just secured additional gas from Germany."
Such actions have led many to charge Tadic with using the gas crisis for his own promotion, while his government is seen by some observers as having failed.
Serbia has some gas reserves northeast of Belgrade at Banatski Dvor, but the pumps to release the gas are broken.
Officials do not say anything about losses caused by this energy crisis but the Union of employers claims the losses to be over 1.5 billion Dinars. Since Serbia had no reserves of gas, the country had to purchase it from European countries at higher price.
‘We pay about USD 500 for a thousand cubic of gas. The price of the gas we purchase from Russia is about USD 450. Having in mind the situation I think that the price of USD 500 is quite fair’, Dusan Bajatovic,
‘Srbijagas’ general director said. So for about five million cubic of gas from Hungary and Germany, Serbia has to pay about USD 2.5 million per day. That is by approximately USD 250,000 more than we would have to pay for the gas that would be supplied to us from Russia under normal circumstances.
‘I cannot tell what the loss that our economy has suffered due to this crisis are but no doubt they are larger than the investment in renewal of the underground gas storage facility at Banatski Dvor would be. That investment is estimated to be about EUR 21,800,000’, Bajatovic said.
‘The companies that suffered losses could sue Ukraine. The company from Ukraine was under obligation to inform at least 24 hours in advance what was going to happen. The fact is that a country must have alternatives in such a situation so it is very important that our gas storage facility is operational’, ‘Blic’ was told at Serbia Ministry of mining and energy.
However, Serbian companies using gas for production, are requesting compensation and announce lawsuits against Serbia.




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