Serbia to pay out Mytilineos debt in installments?

Source: Politika/B92 Wednesday, 17.01.2018. 09:21
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Cooperation between RTB Bor and Greek company Mytilineos began in 1996 (Photo: Ljubiša Aleksić/RTB Bor)Cooperation between RTB Bor and Greek company Mytilineos began in 1996
The Government of Serbia recently formed a commission for negotiations with the Greek company Mytilineos, comprised of Minister of Economy Goran Knezevic, Minister of Energy Aleksandar Antic and representatives of the Ministry of Finance, Politika learns.

Considering that the decision of the International Court of Arbitration in Geneva, according to which Serbia needs to pay around USD 40 million in damages, is enforceable and not subject to complaint, representatives of Serbian authorities officially started the negotiations about the debt repayment schedule on Friday, January 12, 2018. The agreement pertains to copper processing and was signed by RTB Bor with the Greek company during the reign of Slobodan Milosevic. The agreement was never realized.

As Politika's source from the Government of Serbia says, the first meeting of the commission for the negotiations with the lawyers of the Greek Mytilineos was held on Friday. Representatives of the Greek company are expected to reach an agreement about the debt repayment plan with representatives of Serbian authorities at the end of this week.

On January 5, the Government was sent a memo in which Mytilineos reminds Serbia about the unsettled liabilities. Furthermore, the authorities are notified that each day in which the liabilities are not settled costs nearly USD 3,000. Serbia owes over USD 200,000 in interest since the decision of the court of arbitration came into effect on October 19, 2017.

The cooperation between the Greek company and RTB Bor began in 1996, but was only formalized two years later, due to the sanctions. The agreement on multiannual cooperation between the two corporations was signed in 1998. The Greek company obliged to deliver 100,000 tons of ore concentrate for processing and around 3.5 tons of zinc needed for production at RTB Bor, which, in turn, obliged to deliver 1,500 to 1,600 tons of copper and copper-based products a month to the Greek partner. As Politika reports, the Bor company failed to honor this part of the agreement.


From 2004 till 2016, RTB Bor was protected from enforced collection by a decree of the Government of Serbia which initiated the restructuring of the company.

However, Mytilineos sued Serbia at the International Court of Arbitration in Geneva in 2005, Politika writes.

Minister of Mining and Energy Aleksandar Antic confirmed for B92 that Serbia would try to repay the debt towards the Greek company in installments.

As he explained, what follows are talks with the company's owner.

– We would like to realize this obligation in several installments and we will see if the other side agrees during the talks – Antic said, as reported by B92.
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