BELGRADE, October 20 (RIA Novosti) - Russia and Serbia signed on Tuesday agreements on the Serbian leg of the South Stream natural gas pipeline and an underground gas storage facility.
Russian President Dmitry Medvedev arrived in Belgrade earlier in the day for talks with his Serbian counterpart, Boris Tadic, focusing on energy cooperation.
The protocol on the South Stream project was signed by the CEOs of Russian energy giant Gazprom and Serbia's state gas company Srbijagas after the presidents' meeting. The companies will establish two joint ventures in which Gazprom will hold 51% and Srbijagas the remaining 49%.
The two companies also agreed to set up a joint venture to develop the Banatski Dvor underground gas storage facility with capacity of 450 million cubic meters.
"While the construction of a transnational gas pipeline will make it possible to diversify Russian natural gas exports and reduce transportation risks, the establishment of an underground gas depot will help streamline hydrocarbon supplies, taking into account seasonal fluctuations," Gazprom's Alexei Miller said.
Miller said Gazprom will invest over 25 million euros ($37 mln in the underground gas storage project.
Later on Tuesday, a decision will be made on a 1 billion euro ($1.5 bln) Russian loan to Serbia, Russian Emergencies Minister Sergei Shoigu, who heads a bilateral intergovernmental commission, said.
Serbia would use 350 million euros ($523.5 mln) to cover its budget deficit, and spend the remainder on work to be conducted by Russian companies, including on the construction of a metro system in Belgrade.
The Russian leader pledged to continue to support Serbia in defending its territorial integrity, despite other countries' recognition of breakaway Kosovo.
"Russia will continue to render Serbia support in defending its sovereignty and territorial integrity. This support is based on international law," Medvedev told journalists after talks with Tadic.
Kosovo unilaterally declared independence from Serbia in February 2008.
Medvedev's trip to Serbia coincides with celebrations marking the 65th anniversary of the liberation of Belgrade from Nazi forces, and is the first visit to the country by a Russian head of state since Vladimir Putin's trip in 2001.
The Russian leader will also hold a meeting with representatives of the Holy Synod of the Serbian Orthodox Church later in the day.
