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Putin Heir Goes To Serbia To Ink Pipeline Deal

By Associated Press | February 26, 2008

BELGRADE, Serbia — Russia solidified ties with Serbia yesterday, signing a deal that will direct a key gas pipeline through the Balkan nation while promising to stand by Belgrade in its showdown with the West over Kosovo.

President Putin sent his likely successor, Dmitry Medvedev, to watch over the signing in Belgrade, a deal potentially worth $1.5 billion, and to reassert Moscow's opposition to independence for Kosovo. "Serbia needs support now," Mr. Medvedev said.

With Serbia as a political and economic partner in the Balkans, Russia secures a loyal ally in the heart of Europe and reaffirms its position as a key global player.

It may also further Russia's crucial influence as energy supplier to the continent.

Moscow's control of key energy routes has raised fears that it could use supply as political leverage: rewarding countries that support its policies and threatening hardship for those that do not.

Russia has threatened to cut off gas supplies to Ukraine citing unpaid bills.


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