BELGRADE (Serbia), March 22 (SeeNews) – Serbia could face sanctions, including suspension of IPA funds for energy, and difficulties in EU membership negotiations due to unresolved issues in the energy sector, in particular the delay in restructuring state-owned gas monopoly Srbijagas, local media reported.
In case Serbia delays further the separation of the transportation and distribution operations Srbijagas beyond July 1 - the latest delivery date set by the energy ministry - it will face sanctions from the Energy Community, a Vienna-based international energy policy organization, news agency Beta reported on Monday quoting Janez Kopac, the director of the Energy Community Secretariat.
These sanctions could be formal, such as barring the country from voting at meetings, or very serious such as suspending IPA funds for energy which could affect the construction of a gas interconnection between Serbia and Bulgaria, Kopac warned.
In July the Serbian government adopted a decision to unbundle Srbijagas incorporating two new firms, Transportgas Srbija and Distribucijagas Srbija as part of Serbia's obligations towards the European Commission and Energy Community.
In February 2015, the Energy Community - whose key aim is to extend the EU internal energy market to Southeast Europe and beyond on the basis of a legally binding framework - said it had agreed with Serbia an action plan that would see Srbijagas establish a legally separate subsidiary in charge of network operation.
The agreement should provide the basis for rectifying a breach of Energy Community law while also creating conditions for Serbia to start accession talks with the EU on energy policy.
The EU formally opened accession talks with Serbia in January 2014.
Earlier this month the country's economy ministry said Srbijagas had surprisingly recorded a profit in 2015. Srbijagas expected a net loss of 6.76 billion dinars ($59.4 million/54.3 euro) for 2015, but reported a net profit of 2.96 billion dinars. The company's operating revenues reached 78.3 billion dinars, while its operating costs stood at 64.6 billion dinars.
(1 euro=123.5 dinars)
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