EU asked for more time as steel plant talks continue

EU asked for more time as steel plant talks continue

BELGRADE -- EU is not yet considering the request of the government of Serbia to be granted additional time to complete negotiations with the U.S. company Esmark.

The negotiations concern the sale of the Zelezara steel plant in the town of Smederevo.

"The European Commission (EC) has received documentation from the government of Serbia last week. Now it is up to European Commission and the commission for state aid to analyze these documents," Head of EU Delegation to Serbia Michael Davenport told the Beta agency.

Davenport pointed out that this was "an important thing" and that he was glad that the Serbian government continues negotiations with Esmark.

"It is very important that everything be in accordance with existing obligations and to come to a successful conclusion of these negotiations in the interest of all," said he.

The negotiations between the government and Esmark on added capitalization of Zelezara should continue on Monday evening.

As announced by Prime Minister Aleksandar Vucic, Esmark owner James Bouchard will arrive in Belgrade to take part in the negotiations, that will also include Serbian ministers of finance and economy Dusan Vujovic and Zeljko Sertic.

The talks began on January 27 but have not been completed over a disputed USD 15 to 20 million guarantee the American company should provide to confirm that production in the Smederevo plant will continue after it has been privatized.

Esmark is also asked not to reduce the workforce for at least the next three years, and to increase the steel production to 1.5 million tons.

It was announced earlier that the sale would be completed by February, when...