The memorandum refers to the creation of a joint venture between the government owned Transnafta from Pancevo and Oiltanking from Germany.

It will allow Serbia to meet its obligations stemming from the energy sector law by 2023. The obligations concern the creation of obligatory reserves of oil and petroleum products, which will provide Serbia with energy stability and security, especially during energy crises, Mihajlovic told a news conference.

“It is our obligation and we intend to fulfil it by January 1, 2023,” she stressed.

By that time, Serbia has to create a reserve of oil and petroleum products that could cover 90 days of average import, that is 61 days of average consumption, she explained.

Serbia can currently store 716,000 cubic metres of oil and requires another 250,000 cubic metres of storage space, she pointed out.

Oiltanking is one of the biggest companies in the construction and management of storage facilities for oil and petroleum products, she noted, adding that Serbia and Germany had so far worked well together on joint energy projects.

Director of the Transnafta Tomislav Basta said potential sites for storage facilities, which should be managed by the joint company, are still being reviewed. According to him, the country must maintain a total level of oil stocks corresponding to 90 days of average daily net imports or 61 days of average daily consumption.

The representative of the German company Oiltanking, Sven Thiessen, said that Serbia has the opportunity to develop the energy market and ensure regional leadership in this area. He stressed that the Oiltanking has many years of experience in the field of energy storage and management and that it owns the most advanced technology. Thiessen said that the Oiltanking handles storage facilities in France, Germany, Belgium, the Netherlands, and Denmark.

German Ambassador to Serbia Heinz Wilhelm was present at the signing.