Russia to modernise Bosnia oil industry: report

24th March 2011, Comments 0 comments

A Russian bank is to give a 500-million-euro ($710 million) loan for the modernisation of Bosnia's oil industry, Bosnian Serb President Milorad Dodik said on Thursday.

"Russian Prime Minister Vladimir Putin has informed me that the funds will be approved in April," Dodik said in a SRNA news agency report.

The loan, to be used for modernisation of two refineries located in the Bosnian Serb entity -- one of the two making up post-war Bosnia -- will be provided by Russia's Vnjesekonom Bank, he added.

The modernisation programme should be completed by 2013, Dodik said, adding the issue was raised during a meeting with Putin in Belgrade on Wednesday.

In 2007, Russia's Zarubezneft acquired two state-owned Bosnian Serb refineries for 110 million euros, pledging to invest another 850 million euros.

Since the 1992-1995 war Bosnia consists of two semi-independent entities -- the Serbs' Republika Srpska and the Muslim-Croat Federation -- each having its own government.

© 2011 AFP

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