Vucic: Things are moving in the right direction regarding NIS; replenishing reserves is a problem

Photo: Tanjug/Amir Hamzagic

President of Serbia Aleksandar Vucic has said that negotiations with the Hungarians (MOL) regarding NIS will continue from Monday and added that, despite all the difficulties, things are moving in the right direction, but noted that Serbia is spending more and more from oil reserves, and that the question is whether it will be possible to restore them.

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Vucic told TV Informer that there will be meetings with Hungarians on Monday and Tuesday.

"I hope that we will solve all that soon. It's not quite simple. In view of the various procedures related to the (Pancevo) refinery and some previously planned NIS investments in the petrochemical (industry), the Hungarians want the best possible contract for themselves. We want to protect Serbia as much as possible, so we are talking, but I believe that we will find a common ground and that we will manage to solve this important and big issue, especially considering the crisis, and the supply and price of oil," Vucic said.

He added that "what spoils the whole picture" is the fact that more and more reserves are being consumed.

"The question is whether we'll be able to replenish all the reserves. We have done that regarding a part of the initial reserves we put on the market, we paid for it and we are losing a lot of money. We fortunately have financial cushions. We not only have a good monetary policy, but also an excellent fiscal policy. We have a wise and smart policy. The economy is functioning well, we can withstand it," said Vucic.

He added that this cannot go on infinitely, but that (supply) security is ensured.

"Even those who say the worst about me don't have to wait in lines at gas stations. Farmers don't have to. And they know that when we say there are sufficient reserves, that there is enough oil and that prices will not change drastically, they know that we are telling the truth. And that is a great success of our policy," said Vucic.

He pointed out that what is happening between China and Europe, and the United States and Europe, and Russia and Europe, also additionally affects us all.

"If someone thinks that the new 25 percent tariffs on European cars will not affect Serbia, they will, and there will be an adverse effect, there is no doubt, because we are tied for the most part to the European automobile industry, and I'm afraid that even in the mid term, not only in the long term, but even in the short to mid term, this will have additional negative consequences for us," said Vucic.

According to him, there is an ongoing effort to prevent factories leaving from Serbia and make sure people don't lose jobs.

"We had the opportunity to boast about fantastic investments, but they all depend on both the European and the US car industry and of course they will not shut down, these companies are too big, important companies that are not only intensive regarding labor, but also the capital. When the Germans come, they come to stay for many years and that is extremely important for us, but whether some other, smaller components, weaker components will be able to withstand this or not, that's another question. That is why we have to create new jobs, that is why we have to bring in new investors," said Vucic.

According to him, this is also the reason why he will travel to Azerbaijan and China.

He added that there will be another big European visit within a month.

"Our job is to fight, to work, to strive, I believe there will be great news", concluded Vucic.

(Telegraf.rs/Tanjug)