The Presidents of Russia and Serbia are meeting in Moscow on Friday to sign a major oil and gas agreement. The deal paves the way for Russian energy giant Gazprom to build a branch of the multi-billion dollar South Stream pipeline in Serbia.
The South Stream pipeline will be a new gas delivery route to Western Europe. Belgrade agreed to the deal on Tuesday, allowing Gazprom to buy a controlling 51 per cent stake in Serbia's major oil and gas company NIS. The agreement also allows Russia to build a huge underground gas storage facility in the north of Serbia.Serbian Foreign Minister Vuk Jeremic believes the deal secures long-term energy stability in the Balkans.