Russia signs Serbia, wins ‘pipeline war’ with EU

MOSCOW (Reuters) – Russia won the right on Friday to route a major gas supply route to Europe through its ally Serbia, a move analysts described as marking a Kremlin victory in a “pipeline war” with the European Union.

The gas agreement, signed in the Kremlin before President Vladimir Putin and visiting Serbian leaders, alarmed the United States because it increased Moscow’s control over energy supplies to Europe and could undermine a rival EU project.


Strong Russian opposition to independence for the Serbian province of Kosovo was a key bargaining chip in the agreement for Serbia to join the South Stream gas pipeline. Belgrade also agreed to sell a majority stake in Serbia’s oil monopoly NIS to Russian gas giant Gazprom at a favorable price.

South Stream is a 10 billion euro ($14.65 billion) gas transit project organized jointly by Gazprom and Italian energy giant ENI to bring Siberian gas to Europe via the Black Sea.

“Our close political relations were today converted into economic results,” Putin’s chosen successor, First Deputy Prime Minister Dmitry Medvedev, told reporters. “This is a great breakthrough.”

Reuters