Gas Crisis: EU Countries Come To Serbia's Aid

UNCLAS BELGRADE 000021 SIPDIS USDOC FOR 4232/ITA/MAC/EUR/OEERIS/SSAVICH E.O. 12958: N/A TAGS: ECON ENRG ETRD SR SUBJECT: Gas Crisis: EU Countries Come To Serbia's Aid Ref: Belgrade 12 Summary -------------- ¶1. Heat is coming back to Serbia thanks to European assistance. On January 8, Hungary and Germany responded positively to Serbia's request for urgent gas deliveries. On January 9, Austria also agreed to supply Serbia with gas. Gas from Hungary started to flow in the late afternoon of January 8 and the first gas from Germany hit Serbia during the morning January 9. End Summary. European Support for Serbia -------------- ¶2. Serbian President Boris Tadic and Hungarian Prime Minister Ferenc Gyurcsany agreed on January 8 to urgent gas deliveries of up to two million cubic meters (MCM) per day from Hungary's production and reserves depending on Hungarian consumption needs. The first quantities of gas from Hungary started to flow in the late afternoon of January 8. Srbijagas directed these initial deliveries to the freezing Serbian cities mostly in Vojvodina that could not switch central heating systems to fuel oil. ¶3. Late on January 8, Serbia also reached an agreement with Germany on purchases of three MCM per day. Dragan Vucur, Commercial Director of Srbijagas, confirmed to us on January 9 that the first quantities of gas from Germany started to flow to Serbia in the morning. Vucur said that with one million cubic meters from domestic sources, Serbia would be able to cover its urgent needs for all district heating power plants that could not switch to fuel oil and could restart supply to most of the individual households using gas heat. The additional gas supplies would relax pressure on the Serbian electricity system. Serbian electricity consumption peaked at almost 154 million kWh on Orthodox Christmas Eve, January 6, and dropped to 147 million kWh on January 8. More EU Help Comes, Only Promises from Russia -------------- ¶4. President Tadic announced on January 9 that Austria would also provide up to three MCM daily to Serbia. This would bring Serbian supplies very close to the average winter consumption of ten MCM per day under normal circumstances. Serbia also asked for help from Russia for urgent gas deliveries. According to daily Politika, Russian PM Putin said at a press conference in Moscow on January 8, that "Russia is trying to deliver gas to Serbia through alternative routes, through Turkey or Belarus" and that "Russia would do everything to speed up construction of South Stream gas pipeline that goes through Serbia." No Harsh Words, Only a Burned Russian Flag -------------- ¶5. Media coverage of the gas crisis turned more negative toward Russia, but remained restrained. Daily Blic reported on January 9 that citizens of one municipality in the city of Kragujevac in central Serbia burned a Russian flag in protest, blaming Russia for the shortage of gas. President Tadic said that Hungarian and German help to Serbia showed European solidarity. COMMENT -------------- ¶6. Serbian pleas to Russia for gas continue to go unanswered. EU countries came to Serbia's aid with urgent gas deliveries to help Serbs left out in the cold. Serbia's recent energy deal with Gazprom and Russia did not spare it from the gas crisis and did not give Serbia any priority in getting gas from Russia through alternate routes. Tadic is attempting to portray himself as a great negotiator in the press (and perhaps distract the public from his rush to sign the Gazprom deal on December 24) and now is trying to take credit for getting the EU gas. At least in the German case, according to the German Ambassador, the gas was offered as good will, "though I doubt they will thank us." The willingness of EU countries to assist Serbia should reinforce the message from the Serbian public in the last election that Serbia's future is in the EU. End Comment. BRUSH