June 28, 2009

Russia is the first foreign trade partner of Serbia and the exchange in goods reached four billion dollars last year. The global financial crisis influences the economic cooperation in 2009, so in the first four months it was almost halved compared with the same period last year. Despite intensive bilateral relations and trade liberalization, the Serbian deficit to Russia is still high. The reason for that is a high degree of energetic deficiency, as most imports are made of oil and gas. The signing of an oil and gas agreement last year was an important step for economic cooperation. More in the ECONOMIC REVIEW by Jelena Milenković.

Energy is a key field of Serbia-Russia cooperation, which is best confirmed by Russian investments in NIS and the planned construction of the Southern Stream gas line, to pass through the Serbian territory as well, Russian Ambassador in Belgrade Aleksandar Konuzin stressed. Russia is interested to intensify the realization of a gas line to include two gas power plants. The value of these projects is estimated at being several times higher than planned, said Konuzin. He announced the arrival of a Russian delegation in Belgrade next week, to specify further business steps and intensify realization of energy projects.

The largest Serbian hydro power plant, "Đerdap", on the Danube, will be reconstructed with the participation of Russian company “Silvimašini”, said Konuzin. In St Petersburg, equipment is being loaded onto ships, to arrive in  "Đerdap" in August and works are due to start in September. Besides energy and the pharmaceutical industry, the Russian capital is present in banking, mechanical and car industry.

Russian Ambassador in Belgrade Aleksandar Konuzin confirmed that under way are talks between the two countries’ presidents on support of one billion EUR to Serbia, for the stabilizatin of the budget, the construction of an underground line and infrastructural facilities.

The free trade agreement, applied for five years, is also important for mutual economic relations, as it includes some 95% of products, the president of the Serbian Chamber of Commerce Miloš Bugarin said. Serbia has products that are able to meet the high requiremetns of the Russian market. This is confirmed by the years-long presence of Serbian constructionf irms and furniture and medicine manufacturers there. Top exporters include furniture company „Simpo“, Vranje, in  the south of Serbia, and pharmaceutical  company „Hemofarm“, Vršac, Vojvodina. The products exported most to the Russian market are medicines, trailers, cardboard products, laboratory equipment, machines, copper tubes and foods such as apples, frozen fruit and vegetables. There is also room for the improvement of mutual cooperation in the fields of traffic and tourism, assessed Miloš Bugarin.