Minister slams Russian grab for Serb oil monopoly

By Gordana Filipovic

BELGRADE (Reuters) - A Russian bid to gain control of Serbia's NIS oil monopoly for 400 million euros ($588.4 million) is indecent and unacceptable as far as the Economy Ministry is concerned, Minister Mladjan Dinkic said on Friday.

The offer is contained in a confidential Moscow document proposing to boost ties in the energy sector and take complete control of the Serbian petrol and gas market, while promising to consider extending a gas pipeline arm through Serbia.

"The offer is humiliating," Dinkic told Reuters. "They have offered only 400 million euros for a 51 percent stake in NIS. Their property alone is worth 800 million euros according to conservative estimates, excluding business or market share."

"We are supposed to immediately give away the most valuable asset we have and the gas pipeline would arrive in 2013 at best," he added. "They will determine late next year the route of the pipeline depending on market criteria. So we want an international tender to determine NIS's market value."

Analysts believe nationalist Prime Minister Vojislav Kostunica wants to accept the deal, to reward Russia for backing Serbia's efforts to prevent its breakaway Kosovo province from declaring independence, by threatening to use its U.N. veto.

But his deputy Bozidar Djelic -- of the dominant pro-Western party in the ruling coalition -- said Serbia would not make any concessions to Russia in return for political support.

The government was due to hold an extraordinary session on Saturday, but Djelic said parliament would be the one to decide.

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