Serbian govt lays groundwork for Srbijagas unbundling

In the first phase of the process, the issue of the legal break-up of the transmission and distribution sides of the company's business will be settled by June 30 alongside the creation of a holding company in a bid to improve management efficiency, among other goals, the ministry said in a statement.

"[..] This process will ensure the security of natural gas supply to the market while also increasing the investment and development potential of the company," energy minister Aleksandar Antic said.

The restructuring plan is in line with the requirements of the EU's Third Energy Package and with the commitments undertaken by Serbia as a signatory to international treaties, including that for the establishment of the Energy Community, the statement added.

State-owned Srbijagas posted a net loss of 49.7 billion dinars ($505 million/412 million euro) in 2013, up from 36.7 billion dinars a year earlier, data from Serbia's Business Registry Agency indicated. Operating revenues fell 3.9% to 65.96 billion dinars last year while operating expenses dropped 19% to 66 billion dinars.

(1 euro=120.535 Serbian dinars)