Russian Oil Co. Gazprom Buys 51 Pct. Stake In Serbia's NIS For $600 Million

Belgrade, Serbia(AHN)-After clinching an oil pipeline deal with Bulgaria last week, oil-rich Russia continues to secure more international oil deals with the acquisition of Serbia's national oil company, Naftna Industrija Srbije (NIS). Russian national oil company OAO Gazprom acquired 51 percent ownership of NIS amounting to $ 600 million as Russia positions itself as Europe's leading oil supplier.

The deal will serve as a basis for talks on building Gazprom's South Stream gas pipeline to Italy via Serbia, the Serbian government said in an e-mailed statement from Belgrade today. The link will pass through from Russia along the bottom of the Black Sea to Bulgaria, where it will come on land and branch into northern and southern lines.

Under terms of the provisional agreement, approved Tuesday by Serbia's cabinet, Gazprom offered to pay $600 million for a 51 percent stake in NIS, with pledges to turn Serbia into a hub for Russian energy. The contract is to be signed Friday in Moscow, the New York Times reported.

Gazprom will also invest about $725 million toward modernizing Serbia's energy infrastructure. In addition, a spur from the South Stream pipeline under the Black Sea will be directed into Serbia, enhancing its role as a transit point for Russian gas.

Gazprom has taken advantage of the European Union's internal conflicts by forging its own deals with Italy, Bulgaria, Hungary and now Serbia, as it consolidates its presence in southeastern Europe.

Moscow has pledged support to prevent Kosovo's independence, and has helped the Serbian economy and its neighbors by opening new energy corridors in Europe.