Mesic in Russia

Mesic, Putin talk South Stream, NIS-owned real estate

15.12.2009 u 00:32

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Croatia missed the chance for the South Stream gas pipeline project to cross its territory and now the extent to which it could still link up is a matter of further negotiation, Croatian President Stjepan Mesic said in Moscow on Monday after talks with Russian Prime Minister Vladimir Putin.

The South Stream route has already been agreed. It is a matter ofnegotiation how much Croatia could join in that, but it seems to me the chancesare not big. We missed this discussion when there was time, Mesic said inreference to the fact that in 2007, when the South Stream route was beingnegotiated, then Russian president Putin offered that Croatia participate inthe project, but the then Croatian government refused.

Croatia is still believed to have a chance to get a link-up to the pipeline,which depends on Russia's good will, since Russia, as Mesic said after thetalks with Putin, has met its requirements.

Mesic said Croatia had an advantage in its bid, the fact that it already hadoil pipeline corridors so it would not have to buy land.

Mesic and Putin also talked about contentious issues regarding relationswith the Serbian oil company NIS, which is owned by Russia and considers somereal estate in Croatia its property, which Croatia disputes.

A Russian company bought NIS and listed among its base stock part-ownershipof our section of the oil pipeline and claims from us some filling stations,holiday establishments and some facilities, Mesic said, reiterating this waspart of a dispute and that Croatia would take an official position.

Putin wished Mesic the best for his upcoming birthday, and saidRussian-Croatian economic cooperation had grown in recent years to US$ 2billion, but dropped by one-third this year, which can also be due to theglobal crisis.

The two officials also discussed cooperation in the manufacturing anddistribution of drugs, in the power industry and construction.

We are interested in the construction of several big bridges, said Mesic,adding he and Putin also talked about some failed Russian investments inCroatia.

The Russians have complaints about our administration, as one Russiancompany bought the Haludovo hotel complex on the island of Krk, but someonesold part of it to a private owner, so the deal cannot go through, Mesic said,adding it was important to investigate what happened, so that Russians couldhave a motive to invest in Croatia.

Mesic will wrap up his visit to Russia on Wednesday with a dinner withPresident Dmitry Medvedev. He has announced they will talk about intensifyingeconomic cooperation between the two countries.