MOSCOW, October 14 (RIA Novosti) - The Serbian prime minister denied on Wednesday reports that a $1 billion loan to be provided by Russia comes with a demand that Belgrade promote Russian oil interests.
The loan agreement is expected to be signed during Russian President Dmitry Medvedev's visit to Belgrade on October 20. Serbia intends to use the loan to cover its budget deficit and invest in infrastructure projects.
"The Serbian government has not received any special document on the terms of the loan," Mirko Cvetkovic said in an interview with the Serbian B92 TV channel.
Cvetkovic denied reports that Moscow would provide the loan on the condition that the Serbian government strengthen the monopoly position of oil company NIS, in which the Russian government holds a controlling stake, on the Serbian market. The current scheme for oil product imports by NIS expires in late 2010, after which its revenues are expected to drop.
"I'm against extending any monopolies. We have assumed obligations that we must fulfill," Cvetkovic said, adding that the provision of easy terms for oil imports by NIS would jeopardize Serbia's bid to join the European Union.
