The world has faced various geopolitical crises in the past, which to a greater or lesser extent affected the world economy.
Mostly these crises were controlled to remain local without much impact on key economic developments, but the Russian invasion of Ukraine changed everything and showed that the model of military neutrality in Europe is no longer sustainable and that it is the wrong concept, he said in a written statement. Rade Basta, director of JKP Belgrade Power Plant.
He adds that the European Union is already in a prolonged recession due to the war in Ukraine after the Covid 19 pandemic, and with the assumption that the war will continue, that sanctions against Russia will remain in force and will be intensified.
“Serbia will find itself in a situation of crisis overflow and recession that could reach 9%, as well as huge inflation, which due to the earthquake regarding key raw materials and products requires a stricter monetary policy, which is very difficult to sustain during the crisis. Rising food prices will increase poverty, as well as inequality, which will affect the most vulnerable categories of the population because the sharp rise in food and energy prices is the largest part of the budget they allocate as costs, which will automatically lead to social unrest, “said the director of Belgrade Power Plants.
Given that Serbia has a narrow monetary fiscal space, he believes, the most important is targeted assistance to the most vulnerable during this period.
“Our country is completely dependent on natural gas imports from Russia and any disturbance would have significant consequences, as well as the situation that if the EU experiences a deeper recession than expected, it will be a terrible blow to the entire Western Balkans region. endangered population “, states Basta.
According to him, Russian oil and natural gas make up a large part of European imports, as well as Serbia’s, and a quick transition to clean energy is needed as soon as possible, which is important not only for combating climate change but also for a good solution.
As he says, gas comes to Serbia from two directions, but both are from Russia, and now funds have been provided for the construction of the Nis-Sofia gas pipeline, as well as the Nis-Dimitrovgrad gas pipeline, which will be operational from 2023 and when Serbia will be able to to be supplied with natural liquefied natural gas (LPG) from terminals in Greece, as well as the TAP and TANAP gas pipelines, which will enable diversification to begin and eliminate dependence on Russian natural gas.
The ten-year gas supply contract expired last year, but was temporarily extended in November for a period of six months, until the end of May 2022. The price that Serbia received then was $ 270 and is lower than most European countries, but higher than those Belarus ($ 128.5), Turkey ($ 210) and Germany ($ 230) are paying, ”explains Basta.
Therefore, in his opinion, it is very important at what moment and for what period a new agreement on gas delivery is signed, with what price, as well as what kind of foreign policy position Serbia will take towards Russia.
“Energy is one of the key issues in the economy and foreign policy, and I previously called on the government to lift the moratorium on the construction of nuclear power plants and call on the United States and the EU to open a nuclear research center in cooperation with the Vinca Institute. I believe that the United States, as the world’s leading nuclear technology power, is a real partner that can help us establish such a research center, because safe reactors and cheaper electricity production are the main topic everywhere in the world. energy for peacetime purposes is mostly used for the production of electricity “, estimates the director of Belgrade Power Plants.
He also adds that the nuclear industry of the United States of America has incredible results of safe and reliable work.
The statement also notes that Serbia does not need the Serbian-Russian Humanitarian Center for Emergency Situations in Nis, that Serbia has the capacity and knowledge to do it alone, to have it within the Ministry of the Interior, and therefore it should be abolished urgently.
He also notes that it is necessary to open a scientific research center for nuclear technologies with the USA and the EU in cooperation with the Vinca Institute and provide a basis for the construction of the first nuclear power plant in Serbia, Danas writes.
