Russia will reap its first big reward on Friday for supporting Serbia in trying to stop Kosovo from declaring unilateral independence. Next week the European Union may suffer a serious reverse for doing the opposite, if Serbia elects a hardline nationalist president. The price of Kosovo’s freedom is high.
Gazprom, the Russian state-controlled gas monopoly, is to acquire a majority shareholding in NIS, the Serbian state oil monopoly, and in return incorporate the former Yugoslav republic into its proposed South Stream gas pipeline that will run under the Black Sea via Bulgaria to Greece and Italy.
The deal has already been approved by the Belgrade government, although the price to be paid for NIS has not been finalised. Whatever happens, Gazprom will get a bargain, as well as a customer for South Stream rather than the rival Nabucco pipeline project, intended to reduce EU dependence on Russian gas, without having to submit to any competitive bidding process.
What has Russia done to deserve such favourable treatment? It has blocked a resolution in the United Nations Security Council to endorse Kosovo’s independence. That will not stop the process, but it makes it much more difficult for other countries to grant the future state formal recognition. Although the US and most EU states will recognise it de facto, Kosovo will be left in a sort of legal limbo.
http://www.ft.com/cms/s/0/a78fc2a4-cadb-11dc-a960-000077b07658.html