Pancevo-based Azotara finally on its feet by the end of February

(Photo: hip-azotara.rs)

Although privatization of Pancevo-based Azotare was cancelled six years ago, the state has now become majority stakeholder of the company. Namely, former owners of the ammoniac production department, Belgrade-based Univerzal holding and Lithuanian Arvi have debts for electricity and gas. Their debts, after years at court and disputes due to misdealing, with the final decision of the Trade court have been officially turned into state-owned capital.

The entire process is important since Azotara must fix papers for new, potential buyer, Russian TogliattiAzot.

Azotara will finally stand on its feet by the end of February when Serbia and Russia will sign tolling engagement. Based on that agreement, gas for Azotara, Petrohemija and MKS Kikinda will be paid in other goods which our country produces and Russia needs it. Within the agreement of Belgrade and Moscow, the same date is the deadline to get cheaper gas price for Pancevo-based plant.

New-old system

However, the role of RST company which in this engagement along with Yugorosgaz, was added as another mediator in gas sale was controversial. The former minister of energy, Zorana Mihajlovic, halted the deal, explaining that foreign companies sell gas to Azotara at low prices, apart from Srbijagas, which is therefore facing losses.