Energize 3

ISSUE
3
Y
Refining
APRIL
MAY
JUNE
NIS INTERNATIONAL CORPORATE MAGAZINE
Environment
Waste the Waste
INTERVIEW
TANJA MIŠČEVIĆ
SERBIA'S CHIEF EU
NEGOTIATOR
Energy Efficiency and Green Energy
Business By World Standards
Development
Strategy for
Serbian Bunker Stations
DEFINING
LEADERSHIP
1
2
Refining
Refining
1
Refining
2
ISSUE
3
Refining
CONTENTS
Y
APRIL
MAY
JUNE
NIS INTERNATIONAL CORPORATE MAGAZINE
Environment
Waste the Waste
Energy Efficiency and Green Energy
Business By World Standards
INTERVIEW
TANJA MIŠČEVIĆ
3
SERBIA'S CHIEF EU
NEGOTIATOR
NEWS AND TRENDS
ISSUE
Development
Strategy for
Serbian Bunker Stations
DEFINING
LEADERSHIP
REGIONAL
MAGAZINE
3
Y: 2014
APRIL
MAY
JUNE
4-9
COVER STORY
Business by World Standards
10-18
19
Dossier
The mark of responsible forestry
Business
by World
Standards
MINI-VIEW
Borko Raičević
Energy connecting the Region
This magazine is printed
on paper from responsibly
managed forests
10
20-23
24
Tanja Miščević
INTERVIEW
Tanja Miščević
24-27
industrY & BUSINESS
New Profitable Busines
28-31
32
industrY & BUSINESS
Defining Leadership
32-37
region
Energetic opening for business
Defining
Leadership
38-41
ENVIRONMENT
Waste the Waste
42-45
HR
First Chance
Energize
Art direction and design by
Print:
The international magazine of NIS.
Metaklinika
„Stojkov”
Illustrator:
Energize Magazine is published quarterly.
46-49
trendsetter
Energy of Success / Novak Đoković
50-55
Issue 3, July 2014
Published by:
Aleksa Jovanović
Copyright © 2014 NIS
NIS, Novi Sad, Serbia
Public relations and Communication
Photographers:
Department
Mladen Janković, Dušan Đorđević
[email protected]
Phone +381 11 260 66 95
www.nis.eu
50
Novak Đoković
56
CULTURE
Balkan trafik
56-59
full tank
Plovdiv — An Open Air Museum
60-63
Balkan Trafik
3
4
NEWS AND trenDS
New partner ın Super
Card programme
Companies NIS, IDEA, Sberbank Serbia
and Telenor, who are partners in the
intercompany loyalty program called
“Super Card”, signed the Memorandum
of Cooperation with a new partner, the
company DDOR Novi Sad on 12th May.
Kirill Kravchenko, the CEO of NIS, Aleksandar Seratlić, the Chief Executive of
IDEA, Dr Kristian Otto Noi, Chief Executive Officer of DDOR and Valery Ovsyannikov, the Chairman of Executive Board
of Directors of Sberbank, have put signatures to the Protocol on Cooperation to
officially endorse the new partnership.
The cooperation of these five companies will make possible for customers
in Serbia and very soon customers in
the region, as they purchase at these
partners, to collect saving points granting
benefits provided by the unique Super
Card reward programme. DDOR Novi Sad
Company, as the new partner in this loy-
NEWS AND trenDS
alty programme, rewards its customers
with special offers on car insurance as
well as property, life and travel insurance
and gives Super Card points for every
purchase or insurance policies renewal.
All Super Card users who, within a single
three-month long accounting period,
earn a minimum of 60 points become
entitled to a reward booklet with special
discounts, wherein value in points varies
depending on the type of insurance.
McDonald’s has also joined the loyalty program. In a certain period of
time, through the Super Card discount
booklet, this company will give out
promotional coupons, which the Super
Card owners may use in all McDonald’s
restaurants throughout Serbia.
Super Card, the most comprehensive
loyalty program in Serbia’s market, is
successfully expanding the network of
satisfied customers and has become a
part of everyday life for many families in
less than a year. This is further supported
by the fact that more than 25 million
purchases have so far been made using
Super Card in IDEA retail stores and NIS
Petrol filling stations across Serbia.
NIS participated in the sixth public
debate on waste treatment organised
by the Central European Development
Forum and Serbia’s Chamber of Commerce. The event was held in support of
the „Sustainable Energy Week“, which
is marked across Europe with events
promoting innovation in power generation and environment protection.
The topic dominated Serbian National
Assembly discussions attended by the
representatives from the Ministry of
Agriculture and Environment Protection, Provincial Secretariat for Environment, Environmental Agency and
corporate executives. A Memorandum
was signed on cooperation between
the Environmental Agency and CEDEF,
which outlines industry recommendations on the categorisation of waste
in the current legislation and the one
to be adopted following Serbia’s EU
accession.
NIS facılıtates oıl
products qualıty boost
leum and Petrol. NIS Retail Director
Nadezhda Korobeinikova used the venue
to stress the importance of Serbia for
the company as its key market.
market, as it is affected by economic
crisis, shrinking payment capacity of
the populace and a slump in industrial
activity.
In parallel, the company has been
spreading its operations in Romania,
Bulgaria and Bosnia-Herzegovina, which
is facilitated by logistics advantages and
the revamped refinery in the town of
Pančevo.
- Serbia is a demanding market quality-wise. We sell Euro 5 quality fuel,
however, there has been a constant
requirement to improve the quality of
service and additional services. We are
poised to make revenue and profit from
non-fuel products as well– Ms Korobeinikova said.
Debatıng waste
treatment ın Serbıa
NIS – Serbıa’s Top
Treasury Contrıbutor
Serbia’s daily Blic made public a list of 200
last year’s largest state coffers’ contributors. NIS tops this list as Serbia’s only business entity that gave more than RSD 100
billion to the public purse.
Last year, NIS paid RSD 120.6 billion, 30%
more than in 2012. NIS’ tax contributions
accounted for approximately 14% of Serbia’s budget revenue.
Philip Morris, Telekom Srbija, British American Tobacco Vranje and Japan Tobacco
International are on the Blic list, with
disbursements ranging from RSD 10 to 50
billion. They are followed by the businesses contributing between three and
five billion dinars, among them Apatinska
Brewery, Telenor, Monus, Delhaize Serbia,
Carlsberg Serbia and two banks: Intesa
and Komercijalna banka. The companies,
whose last year’s assignments to the state
treasury were between one and three
billion dinars include Fiat, Coca Cola, Raiffeisen Bank, UniCredit Bank and Societe
Generale Bank.
The Blic reports that 80% of the 200
biggest contributors are the companies,
whose controlling stake is owned by foreign companies. Trailing behind them are
state-run enterprises along with few local
businessmen, who made installments in
taxes and dues towards last year’s budget.
As a major regional oil company NIS
attended the „South East Europe Oil
Products Retail Market“, an international
conference under the auspices of Serbia’s National Oil Committee.
The conference panel discussions
included representatives of the region’s
oil majors: OMV, AVIA, Hellenic Petro-
Ms Korobeinikova was cautiously optimistic in her assessment of oil products
- Serbia is a demanding market quality-wise.
We sell
5
Euro 5 quality fuel
however, there has been a constant requirement to improve
the quality of service and additional services. We are poised
to make revenue and profit from non-fuel products as well–
Ms Korobeinikova said.
5
6
NEWS AND trenDS
NEWS AND trenDS
This year, NIS has earmarked
More than
110 500 000
300
dinars for projects to be implemented by citizen
associations, and sports and professional
associations
Serbia’s primary school pupils will benefit
from this campaign
Sports agaınst vıolence
NIS, TAS (Tennis Association of Serbia) and the Ministry of Education, Science and Technological Development entitled have
jointly launched the Sports against Violence campaign.
Over the course of the next school year, more than 300 Serbia’s
primary school pupils will benefit from this campaign featuring
The Mini Tennis Training Programme sponsored by the International Tennis Federation (ITF) – MINI TENNIS promotes sports
values, non-violence culture and fair play in sports.
Pupils from 14 elementary schools in Belgrade were introduced
to mini court tennis and socialised along the way with Serbia’s
top tennis player Jelena Janković.
In its capacity as the general sponsor of TAS NIS has long
supported it within its “Power of Sports” programme and its
corporate responsibility strategy. Thus, in a pooled effort with
the Tennis Association of Serbia the Company promotes healthy
lifestyle and supports young talents.
granted within the “Aiming to the Top”
project, which promotes social creativity and entrepreneurship in Serbia.
Nominations are sent in by the Serbian
Chamber of Commerce, local governments, associations of journalists and
non-governmental organisations. The
This year’s Kapetan Miša Anastasijević
jury made up of university professors,
Award went to Sergei Fominykh, NIS
Legal and Corporate Affairs Director, for evaluated professionalism, market position, social responsibility, and nominees’
the Company’s exquisite achievements
moral and ethical values. The award
in legislation. Sergei Fominykh was
awarded as NIS distinguished executive in the recent years went to Serbia’s
and expert, who has greatly contributed most prominent economic, cultural and
political figures. The official awarding
to the Company’s business results.
ceremony at the Belgrade University
This is the fourteenth year that the Ka- Chancellor’s Office was attended by
petan Miša Anastasijević Award has been numerous notable figures.
NIS legal
achıevements
rewarded
Supporting local community
by funding best projects
By the end of this year, NIS will have supported 164 projects
aimed to facilitate economic and social welfare of cities and
municipalities throughout Serbia. The projects have been selected in the open competition system as part of the corporate support programme for local communities implemented
under the slogan “Common Cause – Community”.
According to established criteria, the jury made up of NIS
representatives and the cities and municipalities has selected
the best projects out of the total of 1,173 project applications.
In the selection process, the jury made sure that an equal
amount of support is provided for projects in five different
Serbıa’s role ın the Balkans
Energy Market
The Chamber of Commerce of Serbia hosted an energy forum
entitled The Role of Serbia in the Energy Market of the Balkans.
The forum gathered numerous experts with a view to defining
a common approach to energy policy in Southeast Europe and
ensuring pan-regional collaboration among the countries interested in improving the market of energy-generating products. NIS
was one of the participants of this year’s forum. Ana Maćić, Head
of the Strategic Development Section at NIS spoke about the
investments of NIS and future strategic objectives of its business
development in Serbia and the region. “NIS intends to grow into
a regional energy company, which is the reason why it has been
extending its operations in the region to the retail market of Bulgaria, Romania and Bosnia and Herzegovina, as well as to the area
of exploration in Romania, Hungary and Bosnia and Herzegovina,”
Ms Maćić said.
areas: sports, culture, science, environment protection, and
assistance to socially vulnerable groups. Other than that, in
selecting the projects the importance of resolving problems
for the local community was assessed, as well as the level of
inclusion of the local community in all the project stages, the
justification of the budget with respect to the proposed activities, the relevance of the problems that the project focuses
on with respect to the needs of the local community, and the
alignment between the set goals, the proposed activities, and
the expected results.
This year, NIS has earmarked 110.5 million dinars for projects
to be implemented by citizen associations, and sports and
professional associations based in the 11 municipalities with
which the company has a collaboration agreement: Belgrade,
Novi Sad, Niš, Pančevo, Zrenjanin, Kikinda, Novi Bečej, Žitište,
Kanjiža, Srbobran, and Čačak.
7
8
8
9
NEWS AND trenDS
NEWS AND trenDS
Gazprom launches regıonal consumer web sıte
A regional GAZPROM retail network web site has been launched intended for consumers in Serbia, Bosnia-Herzegovina, Romania and Bulgaria. It is available in the
local languages and English.
Nagrada za
korporativnu
NIS je dobitnik prestižne VIRTUS nagrade
nagradu
za doprinos
na nacionalnom
NIS
Solar
LED
tree
nivou, generalnom direktoru NIS-a Kirilu
Kravčenku
je Majkl
Devenport,
NIS
launched uručio
a Solar LED
tree at
a ceremony
ambasador
delegacije
Evropske
held
in the Beszédes
József
College inunije
the u
Srbiji.town of Kanjiža. The company supportSerbian
ed this environmental project within its socially
responsible
2013.
-Izuzetnobusiness
nam jeprogramme
drago što for
smo
dobitnici
„Virtus“
nagrade.
Poslednjih
A mini solar park represents a uniquegodina
NIS je napredovao
u ekonomskom
smeru
architectural
design with
solar panels have
i
povećao
učešće
u
budžetu
Srbije
been arranged in the form of a big tree. sa
sedam
više
odis 14
odsto,by
ukoliko
u
This
solarna
LED
tree
powered
the Sun
as a renewable energy source for light and
electricity consumption within the college
production units.
The
web
site is so
concieved
to caterZa
to all categories of consumers in Serbia,
obzir
uzmemo
i plaćanje
dividendi.
Bosnia-Herzegovina,
Bulgaria. It gives easy access to details on quality
nas je veoma važno Romania
i da svakeand
godine
ofulažemo
products
and
services in
GAZPROM
više
u socijalne
projekte.
Takopetrol stations. Other than that, a new online
service
started
–
petrol
stations
locator.
The web site contains information on cursmo u poslednjih pet godina uložili
rent
special
offers
and
promotions
for
local
consumers and transit clients.
više od pet milijardi dinara u različite
programe – saradnju sa univerzitetom,
The
portalzajednicama,
has been devised
inform buyers of the product quality as the Company
lokalnim
sportto
i kulturu.
offers
a wide range
of premium
and other products that meet the needs of
Ova nagrada
će sigurno
uticati fuel
da još
most
demanding
clients.
odlučnije
nastavimo
istim putem istakao je tom prilikom Kiril Kravčenko,
generalni direktor NIS-a.
Tradicionalne godišnje VIRTUS nagrade
dodeljene su sedmi put kao priznanje
kompanijama koje su tokom 2013.
godine najviše doprinele opštem dobru
pružajući materijalnu ili drugu vrstu
zacijama civilnog društva.
In late May Gazprom Neft started
extracting crude from Badra oilfield in
Iraq. Complex surveys have been under
way at the oilfield slated to be complete within three months to start the
commercial extraction. Once all that
accomplished
Badra
would be poised
to
Rast proizvodnje
ugljovodonika
i
reach
the project
extraction
level of 15
značajno
povećanje
obima prodaje
thousand
barrels
daily. prometa (sitna
u premijum
kanalima
Objavljen
„Gasprom njefta“
veleprodaja i sopstvena mreža benz- inskih
Development
Badramlaznog
is one ofgoriva
the i
stanica, of
prodaja
first
Gazprom
Neft’s
international
assets
bunkerisanje) obezbedili su povećanje
inpokazatelja
terms of crude
oil extraction.
korigovane
EBITDA We
za 4,2
have
realised
this
project
initial
odsto. Čist prihod iznosifrom
177,92the
milijarde
stage
andšto
shortly
managed
to carry out
rubalja,
za 0,9
odsto premašuje
isti
the complete range of works required
for Badra’s industrial development.
Dynamics of Brent and Urals
Crude Oil Pricies
NIS na Sajmu
automobila u Beogradu
Aleksei Belov, NIS Energy Director, took this
occasion as an opportunity to reiterate NIS
commitment to facilitate local communities’
development through the “Cooperation for
Development” project. The solar LED tree is
NIS je tradicionalno nastupio na beoone out of 12 such projects backed by NIS
gradskom Sajmu automobila „Belgrade
last year. This year within a public competiCar show 2014 “gde je ljubiteljima autotion programme the company is to fund
mobilizma ponudio bogat i raznovrstan
another 23 projects in Kanjiža.
program u okviru svog štanda. Sa posetiocima sajma najpre se družio najbolji
srpski automobilista Dušan Borković.
U okviru svog nastupa na Sajmu, NIS je
predstavio i rezultate poslovanja u 2013.
godini jednog od svojih biznis pravaca
koji se bave mazivima. Preostali dani na
sajmu za naše goste bili su rezervisani
za druženje sa košarkašima Partizan
NIS i fudbalerima Crvene Zvezde, dok
su poslednjeg dana sajma, na NIS-vom
štandu, predstavnici medija dobili priliku
da isprobaju jela pripremljena kuvarima
Gazprom benzinskih stanica.
Gazprom Neft starts
crude oıl extractıon
ın Iraq
The experience gained by Gazprom Neft
as operator is to improve our competencies required to deliver new projects
in the Middle East and in other regions,
where the company has been looking
into possibilities of further development, - says first deputy CEO Gazprom
Neft Vadim Yakovlev.
Proizvodnja u 2013. godini dostigla je
457,42 mln. barela naftnog ekvivalenta
(62,2 miliona tona n.e.), i povećala se za
4,2 odsto u poređenju s rezultatima iz
2012. godine. Najveći uticaj na ovaj pokazatelj imali su faktori rastuće proizvodnje
u Orenburškom regionu i na Priobskom
nalazištu, zatim proizvodnja gasa na
Muravljenkovskom nalazištu, početak
rada Samburgskog nalazišta „Sever
Energije“, rast obima iskorišćenosti
kaptažnog naftnog gasa, kao i uspešna
primena visokotehnoloških operacija na
postojećim nalazištima Kompanije.
Ukupni obim prerade nafte u prošloj god-
Waste water
treatment
A unique synergy of modern technologies in the new complex ensures the
removal from the water up to 99 per
cent of contaminants, 90 per-cent
reduction of discharge into air during
cleaning, as well as a two-fold reduction
of water consumption in the Gazprom
Neft Refinery in Russian town of Omsk.
- The construction of state-of-the-art
closed-circuit treatment facility is one
of the major environmental projects
within the Omsk overhaul programme
by 2020. The new complex will be put
on stream in the shortest period – by
the end of 2017. Simultaneously with
its constructione, a multi-stage soil
recultivation will be carried out on the
compound of the old treatment plants –
said Omsk Refinery CEO Oleg Belyavsky.
Dollar-Euro Dynamics
Urals Crude (USD/BBL)
Brent Crude (USD/BBL)
112
1.400
110
Italıan Ambassador
vısıts refınery
ın Novı Sad
During his visit to the SSV Italian Consortium, which has been engaged by
the Novi Sad Refinery, Italy’s Ambassador to Serbia, Giuseppe Monco, visited
the site where the Project of the Tank
and Technological System Reconstruc-
tion for Petroleum Transportation has
been under way.
As part of modernization of the NIS refinery
facilities in Novi Sad, the Italian Ambassador was given an up-date on the Project package, including the construction
of primary facilities for the production
of base oils which will also, as in the
case of this Italian Consortium, engage
numerous other local as well as foreign
contractors.
1.352
108
106
1.300
1.250
104
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COVER STORY
COVER STORY
Energy Efficiency and Green Energy
Business
By World
Standards
Ana Krajnc
In terms of energy efficiency, Serbia is at the very bottom of
Europe. It spends from three to five times more electricity
per domestic product unit than EU countries, and two to
three times more than the neighbouring countries.
NIS is implementing the programme of increasing energy
efficiency which includes the application of the best world
practices in the area of electric energy cost optimization
11
12
COVER STORY
COVER STORY
According to the latest information of
the International Energy Agency, the
energy efficiency measures implemented by 11 member states of the
organisation in the period from 2005
to 2010 saved energy in the amount of
USD 420 billion oil equivalent.
The Agency's report published in
autumn 2013 envisaged that the global
need for energy by 2035 would increase
by a third in comparison to present
consumption and that the share of
fossil fuels would decrease from 82 per
cent, which was their share in total
energy consumption in 2010, to 76 per
cent in 2035.
While the average annual energy
demand rate is estimated at 2.3 per
cent in the region of Southeast Europe,
which is twice as much as in the previous decade, Serbia has been at the very
bottom of Europe in terms of energy
efficiency for some time now. According to the information of CEDEF (Central European Development Forum),
three to five times more electricity per
domestic product unit is consumed
than in EU countries, and two to three
times more than in the neighbouring
countries. - Between 50 and 60 per cent
of the energy we consume in Serbia
is wasted due to poor insulation and
consumption decreased on account
of poor use of available production
capacities, outdated equipment and
inadequate equipment maintenance.
There has been a slight fluctuating
growth of energy consumption in the
industry sector in the last few years Ms Mihajlov says.
installations, and we waste approximately half a billion euros per year
because we do not address energy efficiency - believes Jovanka Arsić Karišić,
Chairwoman of the organisation's
Steering Committee.
NECESSARY NEW
TECHNOLOGIES
Based on statistical information available, it is not possible to determine the
accurate, final energy consumption per
industry sectors in Serbia, nor can energy
indicators be clearly defined. The reason
for this situation is that the energy
management system, which has been
envisaged by the Law on Efficient Energy
Use, has not been established yet.
Anđelka Mihajlov, Environmental
Expert, says that energy intensity (the
ratio of energy consumption and the
level of GDP - an indicator of the efficiency of the economy) in the industry
of the Republic of Serbia in 1990 was
four times higher than in Western
European countries, whereas in 2002, it
increased by 25 per cent.
- Specific energy consumption in the
industrial sector grew during the 1990s,
while the share of industry in the final
Ms Arsić Karišić feels that in order
to achieve efficient use of renewable energy sources (RES) and energy
efficiency, it is necessary to keep upto-date with and introduce new tools,
replacing the outdated technologies
with the clean ones. This would ensure
a practical approach to energy management, application of alternative energy
programmes, efficient tariff monitoring
and energy quality management.
- In Serbia, this area is still entirely
reserved for the private sector. Previous
investments in RES have been made in
more than 200 privately owned facilities
although this area is considered to be
the most lucrative sector in any state.
On the global level, the need for
renewable energy sources has been
constantly growing during the last
decade. According to the latest available information of REN21, the share
of renewable energy sources reached
19 per cent in 2011, half of which was
generated from bio-mass.
Between
50 i 60 %
of the energy in Serbia is wasted due
to poor insulation and installations
and approximately half a billion euros
is wasted per year since not sufficient
attention is paid to energy efficiency
In 2012, energy from renewable sources covered 14.1 per
cent of gross final consumption in 28 member states of the
European Union, compared to 8.3 per cent in 2004, according
to the information published by Eurostat in March this year.
The objective for 28 EU member states is to satisfy the needs
of 20 per cent gross final energy consumption out of renewable energy by 2020. Bulgaria, Estonia and Sweden have
already reached the respective objectives set. To be more
precise, Bulgaria has reached the set objective of 16 per cent,
Estonia has reached 25 per cent, and Sweden is using more
than 50 per cent energy from renewable sources.
With regard to their commitments, the Western Balkans
countries have agreed within the Energy Community to
reduce the use of energy by nine per cent by 2018.
Representatives of the Section for Renewable Energy Sources
in the Ministry of Mining and Energy say that by 2020 Serbia
must reach 27 per cent share of renewable energy sources
in gross final consumption, with the share of energy from
renewable sources in the transport sector of 10 per cent. According to the official statistics, the share of renewable energy sources in gross final consumption in 2013 was 19.3 per
cent, which means that we replaced approximately 10 megatons oil equivalent with renewable sources. With regard to
the structure of electricity generated from RES, energy from
hydroelectric power plants is dominant, whereas bio-mass is
dominant in generation of thermal energy.
As they emphasise in the Ministry of Energy, the privileged
producer status may be granted not only in the area of energy generation from renewable energy sources, but also to
producers of electric and thermal energy in highly efficient
and co-generation plants, amounting to approximately 9
MW installed capacity connected to the power grid in Serbia.
Total World Energy Consumption by Source
 Fossil 78.2 % |  Nuclear 2.8 % |  Renewable 19 %
Renewable Sources:
 Biomass 9.3 % |  Bio-heat 3.78 % |  Bio-power generation 0.35 % |  Wind power 0.56 % |  Solar PV 0.08 %
 Solar CSP 0.004% |  Ocean power 0.001 % |  Geothermal electricity 0.07% |  Hydropower 3.73 %  Solar hotwater 0.22 % |
 Geothermal heat 0.14 % |  Ethanol 0.55 % |  Biodiesel 0.23 %
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COVER STORY
COVER STORY
PROOF OF EFFICIENCY
Information from the region on the share of energy
generated from RES in total final consumption
In the last three years, NIS has been implementing the Energy
Efficiency Improvement programme, which is a part of a major
project involving the increase of total performance efficiency in
all organisational units.
Albania
31,3%
Croatia
12,6%
FYR of Macedonia
21,9%
The fact that our Company has recently been issued a certificate verifying the application of (En MS) EN ISO 50001 international standard in the energy management system in the
operation of the Company's organisational units proves how
much has been accomplished in terms of energy efficiency so
far. Obtaining of the certificate represents a stage in the implementation of NIS energy policy. The certificate has been issued
by the Bureau Veritas certification body.
Moldova
11,9%
Montenegro
26,3%
Serbia
21,2%
Ukraine
5,5%
Kosovo*
18,9%
This certification proves that NIS has introduced an energy
management system which, by applying the best international
practice, ensures increased efficiency of the Company's business operations and reduction in the consumption of energy-generating products and in the costs of their procurement,
at the same time.
NIS is implementing the programme of increasing energy
efficiency which includes the application of the best world practices in the area of electric energy cost optimization.
Ilya Kutyaev, Director of the Department for Development of
Energy, says that the Energy Efficiency Improvement programme in NIS involves the use of best global practice in the area
of electric energy cost optimisation. “The main consumers
of energy-generating products in NIS are its refineries, which
is why the facilities of the Refining will be the main place to
increase energy efficiency. In addition, the implementation of
the Construction of Condensate Return System in Novi Sad Oil
Refinery project will start this year and it has also been planned
to replace a certain number of compressors and pumps. Owing
38%
Bosnia and Herzegovina 34,0%
The programme objective is to introduce the practice of saving
and rational use of energy in the entire Company and to implement new technologies in order to reduce energy consumption.
Standard EN ISO 50001 helps the Company put in place effective process management, increase energy efficiency and use
energy more rationally, which results in considerable reduction
of operating costs without an adverse impact on productivity
and quality of delivered products/services as well as in reduction of an adverse impact on the environment.
15
to a series of activities aimed at increasing energy efficiency, a
considerable decrease in the Solomon Energy Intensity indicator is planned,” Kutyaev explains.
0,0%
COGENERATION
NIS and Gazprom Energoholding are planning to implement
a joint project involving construction of a steam-gas power
plant with the electric capacity of 208 MW in Pančevo. According to Alexander Varnavskiy, Deputy Director of Energy
for Implementation of NIS Investment Projects, the power
plant is to provide reliable supply of thermal energy to the
Refinery at an acceptable cost and with minimal adverse
impact on the environment.
– Construction of the power plant increases reliability in the
supply of thermal energy to the Refinery, which is essential.
Furthermore, NIS will be able to put considerable quantities of electric energy onto the market and make additional
profit - Varnavskiy says.
He adds that by means of this project NIS is becoming a true
energy company with the intent and plans to significantly
increase its share in the electric energy market by constructing new power plants.
- We are planning to construct a small co-generation power
plant with a gas turbine and nominal electrical capacity up
to 10 MW in Novi Sad Oil Refinery. The project objective is
40%
20%
28%
17%
33%
27%
11%
25%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
 the percentage of share in the base year 2009  the difference required to reach by 2020 with the ultimate objective for the year
Source: Ministry of Mining and Energy of the Republic of Serbia
The programme of
increasing energy
efficiency at NIS includes
the application of the best
world practices in the area
of electric energy cost
optimization
to increase reliability and efficiency in
thermal energy supply to the current
consumers on site, as well as the factory of base oils planned to be constructed - Varnavskiy says. The power plant
is going to sell all generated electricity
to the public electric grid at the stimulating price which the Government
approved for highly efficient generation
of electricity, i.e. for the power plants
with the average annual co-generation
usefulness rate of minimum 85 per
cent.
- If we achieve the annual co-generation usefulness rate of minimum 85 per
cent, then we will sell the electricity
generated at the stimulating price
the Government has introduced for
highly efficient generation of thermal
and electric energy - Varnavskiy says,
underscoring that the requirement set
in terms of the annual co-generation
usefulness rate in Serbia is too high
and borderline for the technology used
by the Company.
-If this requirement were to be lowered
to a rational amount, there would
be greater use of the gas otherwise
discharged, which means that a natural
state resource is not used - Varnavskiy
believes.
In 2013, NIS also put into operation
four co-generation modules. One of
them is in the territory of the gathering
and dispatch station NIS Sirakovo (the
municipality of Veliko Gradište), one of
them is in the Company's oil reservoir
“Kikinda gornje” (the municipality of
Kikinda) and two of them are in the
“Velebit” reservoir (the municipality
of Kanjiža. The total projected electri-
16
COVER STORY
COVER STORY
Kutyaev adds that the Serbian legislation supports the
development of alternative energetics, but it is required to
adopt bylaws so the law could be enforced; this includes the
RRA model, which will ensure that such projects are funded
by banks. -The main problem in implementing this project
is non-compliance of the above mentioned document with
bank requirements. In the meantime, the Government of
Serbia continues to actively engage in resolving the problems which have occurred. These projects are something
new for Serbia and it is therefore natural that certain problems arise, but we and the Government are doing everything
in our power to implement them- Kutyaev states.
Feed-in tariffs are at the same level as in other countries,
which, according to Kutyaev, makes Serbia competitive.
Naturally, it is in investors' interest to attain the maximum
price, but the applicable tariff system is well-balanced, he
concludes.
RESPOND TO CHALLENGES
PLANDIŠTE WIND FARM
The Serbian legislation supports the
development of alternative energetics,
but it is required to adopt bylaws so the
law could be enforced
city-generating capacity of the four co-generation modules
is 3885 kW and the annual volume of total electricity generation is 28.92 million KWh. The investment in the construction of four modules amounts to EUR 4.61 million. It is
planned to put into operation two additional co-generation
modules in Boka and Srbobran in Vojvodina within a short
period of time.
In the next three years, NIS is planning to construct six
other small power plants with the total electricity installed
capacity of 27 MW, the total value of these projects being
approximately EUR 33.75 million.
NIS has also made a decision to launch the project of Plandište wind farm, which envisages the installation of 34 turbines with the total capacity of 102 MW. The annual generation of electricity will reach approximately 262 GW/h and
the total investment in the project will amount to approximately EUR 160 million. “At the moment, contractors and
consultants have already been selected, negotiations with
banks on designated project funding are continuing, but
have been slightly complicated by the fact that the existing
standard contract on the purchase of electricity (RRA) does
not meet bank requirements,” Kutyaev explains.
According to Kutyaev, the decision to construct the
wind farm was influenced by the possibility of achieving
synergy with the primary activity of NIS, owing to quota
compensation for CO2 emission. Furthermore, the decision was influenced by the current system of support to
electricity generation from renewable energy sources in
Serbia, which makes similar projects attractive to investors in economic terms.
Antonela Solujić, Head of Section for Energy Efficiency
Improvement in the Ministry of Mining and Energy of the
Republic of Serbia, says that the activities on harmonisation
of the domestic legislation pertaining to energy efficiency
have so far been the result of obligations under the Energy
Community Treaty and in the following period, the requirement to implement the new Energy Efficiency Directive of
the European Union can certainly be expected. Inter alia,
this directive is to ensure achievement of the main objective
in terms of energy efficiency, which involves its increase by
20 per cent by 2020.
In 2010, Serbia adopted the first National Action Plan on
Energy Efficiency for the period from 2010 to 2012, which
specified the medium indicative objective for the period in
the amount of 1.5 per cent of the final domestic energy consumption in 2008 and the total objective of minimum nine
per cent of the final energy consumption in the ninth year
of application. As they say in the competent Ministry, it was
planned to save 1.5 per cent in the final energy consumption
and the saving of 1.22 per cent was made, making the plan
implementation 81.5 per cent.
In October 2013, the Government adopted the second Action
Plan on Energy Efficiency in the Republic of Serbia for the
period from 2013 to 2015, which envisages final energy
savings compared to 2008 in the amount of 3.5 per cent.
- The accomplishment of set objectives requires mobilisation of significant funds, as well as accreditation of a
certain number of laboratories which will be able to identify
whether requirements pertaining to a product's energy efficiency have been met. The obligation to apply the criterion
of eco-design may lead to the requirement to modify the
production system in the industrial sector - she adds.
FUNDING SOURCES
Projects in the area of renewable energy sources and energy
efficiency in Serbia may be funded in different ways. At the
moment, Serbia is eligible to use IPA funds and bilateral
grants, i.e. soft loans of international financial institutions,
but when it joins the EU, greater resources are expected
from structural funds.
On 1 January 2014, the Budget Fund for Energy Efficiency Improvement started working. It has been planned to earmark
RSD 300 million for it from this year's budget.
“
The construction of steam and gas
power plant increases reliability in the
supply of thermal energy to the Refinery,
which is essential. Furthermore, NIS will
be able to put considerable quantities
of electric energy onto the market and
make additional profit
”
Alexander Varnavskiy,
Deputy Director of Energy for
Implementation of Investment Projects
17
18
COVER STORY
COVER STORY
Mini-view: Borko Raičević, Energy Efficiency Expert
in the Energy Community Secretariat
Energy efficiency
- West Balkans'
objectives
What are the objectives that the Western Balkans
countries are supposed to meet with regard to energy
efficiency?
With regard to major commercial projects, there are lines of credit such as
the ones granted by the European Bank
for Reconstruction and Development
(EBRD), IFC - a member of the World
Bank and German Development Bank
KfW. For minor projects it is possible to
secure funds from other lines of credit
most frequently made available by
commercial banks.
The Ministry of Mining and Energy is
launching the Reducing Barriers to Accelerate the Development of Bio-Mass
Markets project, which is to be implemented in the next four years with the
UNDP by using the GEF funds. Among
other activities, the project involves direct co-financing of six SNR projects on
bio-mass use, bio-mass being the most
potential renewable source in Serbia.
Anđelka Mihajlov says that energy
efficiency and environment operative designated funds are the main
financial mechanisms and institutions
in many countries for the provision of
funds for stimulation of rational use
of energy and increase of energy efficiency, i.e. implementation of demanding EU directives in the environmental
sector. To be able to use international
funds to the full extent, Serbia has to
demonstrate that it is ready to provide
its own share, Ms Mihajlov says.
According to her, there are estimates
that the investments for energy efficiency increase in line with sustainable growth requirements will reach
EUR 2.7 billion by 2030. Average annual
investments amount to EUR 147 million. It has been estimated that approximately EUR 1.05 billion or EUR 58
million per year will be necessary for
transport with the reduction of consumption and emissions by 17 per cent
below BAU (Business as Usual) by 2030.
There are estimates that the total of
approximately EUR 1.7 billion (or EUR
89 million per year) will be required for
the housing, commercial and industrial sectors and that there will be a 12
per cent improvement in efficiency in
all sectors compared to BAU, accompanied by reduction in emissions to 32.8
million tons, i.e. 11 per cent by 2030.
As Ms Mihajlov explains, the total estimated investments are to be subject to
change under different assumptions of
target energy efficiency and intervention costs.
The Western Balkans
countries have committed
within the Energy Community
to reduce energy use by
9%
by 2018
For instance, Government incentives
of 20 per cent for stimulating the
investment required for the 20 per
cent efficiency scenario by 2030 would
represent the total expenditure of EUR
25 to 35 million per year.
- However, not all is expenditure - as
a result, the costs avoided by 2030
would be higher than the investments,
reaching the cumulative net benefit in
the amount of EUR one to two billion
or approximately 50 to 100 million per
year - Ms Mihajlov emphasises.
The Energy Community has adopted certain energy efficiency directives, namely Directive 2006/32/EC, Directive 2010/31/EU and Directive 2010/30/EU. However, some
important industry-related rules, such as the EU Emissions
Trading System, are not applicable within the Energy Community. We are currently studying the impact of the new EU
Directive 2012/27/EU on energy efficiency.
What is the situation with renewable energy sources?
In 2012, the Ministerial Council of the Energy Community decided to implement Directive 2009/28/EC on renewable energy
sources, which its member states were supposed to adopt by
1 January 2014. This involves the obligation of all member
states to set their own national objectives, which are to be
met by 2020, by promoting use of renewable energy sources in
energetics, heating, cooling and the transport sector. Member states are to prepare national action plans on renewable
energy sources, identify sector objectives, technologies they are
planning to use, as well as measures and reforms to be implemented in order to remove the barriers to further development
of renewable energy sources.
The industry should take active part
and support decision-makers in creating
relevant profitable strategies and
measures to promote rational use of
energy as a benefit to all citizens
What is the role of the industrial sector in the process?
The industry should take an active part and support
decision-makers in creating relevant profitable strategies and measures to promote rational use of energy as
a benefit to all citizens. The examples of national policy
mechanisms include taxes on carbon dioxide emissions,
direct regulation of industrial processes for the purpose
of emission reduction and introduction of standards for
end users in terms of energy efficiency increase.
In addition, the industry may include objectives and technical innovations related to energy efficiency in business
plans. Apart from technological innovations, companies
should adopt the practice of energy management by implementing ISO 50001 Energy Management Standard for a
system that promotes introduction of energy efficiency
improvement and reduction in the emissions of harmful
gases in routine business operations.
Furthermore, oil and gas companies may offer their
customers specialised energy services, such as energy
revision and consultation about reduction in energy use.
19
20
DosSIER
dosSIER
Regional Energy Cooperation
Energy
Connecting
the Region
Ivana Ristić
The region of former Yugoslavia has a strategic geographic
position between the east and the west. Therefore analysts
agree that it has great energy market potentials. These are
currently not sufficiently utilised, but this could change
mainly through joint regional projects. EU funds offer the
most reasonable prospects for their financing.
Serbia's Chamber of Commerce reminds that the most recent major project involving at least two countries from the
region was the construction of Đerdap Hydropower Plant on
the Danube, a joint project of Serbia and Romania.
“Đerdap was the last major regional project in the energy
sector. The next one will be the South Stream Project,” Slobodan Petrović, Secretary of Energy Division within the Serbian
Chamber of Commerce, tells Energize.
However, more than three decades have gone by since.
While the region is awaiting its next gigantic project that
will connect it in terms of energy supply, the South Stream
Project, minor projects are also needed to integrate the
energy sector.
Mr Petrović confirms that around fifteen regional projects are
currently active covering all energy segments. However, he warns
that these projects are based on energy products or know-how exchange, while projects involving joint entrepreneurship are missing.
“There is no joint production or construction of energy infrastructure,” Petrović says for Energize.
He goes on to say that plans are being made but not implemented. He explains that the Drina Basin offers possibilities
for electricity sector and that there are plans in this area, but,
according to him, it is difficult to reconcile different interests
and demands of the states. “This is why there are no regional
projects in the electricity sector, only plans,” says Petrović.
He adds that the next project to spur the region into joint
investment could be a regional exchange of energy products
and electricity, which should come to life in 2017.
Petrović stresses that it is NIS that pushes regional cooperation forward by expanding its areas of exploration and its
retail network.
The region of former Yugoslavia, as well
as the entire South East Europe, has
considerable unused energy capacities.
There has been no major project for
more than three decades now, yet
announcements from the European
Union, which sees the energy sector as
one of the future’s crucial industries,
raise hope that there will be more funds
for cooperation development
21
22
DosSIER
dosSIER
This goal can be achieved by cooperating more closely in the
region through various joint energy projects.
Neighbourly
Collaboration
The BIOGOS Project has been developed together with
the Faculty of Engineering and Shipbuilding of the Zagreb
University and was approved at the Know-how Exchange
Programme (KEP) of the Central European Initiative (CEI).
This regional organisation will co-finance 33 percent of
the approved project budget totalling around 40,000 euros,
whereas the remaining funds (around 24,000 euros) will be
provided by the National Petroleum Committee of Serbia.
One of the regional projects involving
this company as an active member
of the National Petroleum Committee of Serbia (NPCS) is BIOGOS, which
is based on sharing Croatia’s experience in implementing the 2009/28/EC
Directive on Traffic Biofuel. The project
is being implemented in 2014 through
expert workshops organised in Belgrade and Zagreb, and another working group is actively preparing project
recommendations and draft bylaws in
Serbia’s biofuel sector, which must be
adopted as this is Serbia’s obligation
in the harmonisation process. In this
process, cooperation has also been
established with Serbia’s Ministry of
Mining and Energy which is competent
for adopting such bylaws and is represented in the above working group.
The EU has approved
more than
160
projects to Serbia in the past
seven years, only fifteen or so
in the energy sector.
A total of
5,85
billion euros of the Europe’s
budget is earmarked for
energy investments by 2020.
Renewable Sources as
a Platform
Given that the EU’s energy development strategies have long
been focused on renewable energy sources, energy efficiency
and environmental protection, experts see these three areas
as the factor that can integrate regional countries through
joint projects.
Evgeny Metelev, NIS Director of Department for External and Governmental
Relations in Foreign Countries, informs
Energize that Serbia needs to harmonise its traffic biofuel regulations with the
European standards by late 2014, and it
will be useful to follow the practices of
Croatia which has already completed
the process. “This is not a commercial
project, it concerns the provision of
support to Serbia in establishing the
legal framework for this area,” Metelev
explains, adding that the project is an
example of good regional cooperation
given that it is not profit-oriented but
aimed at developing legislation and
governmental capacities along with
prompting knowledge exchange with
neighbouring countries.
“Such model of NIS’s participation will
be applied in other projects in the future,” announces Metelev.
He stresses that this is only the initial
stage of harmonisation with relevant
EU policies, to be followed by the
implementation of adjusted policies.
Metelev explains that regional countries rely on one another in terms of
energy which is a necessity since they
are all burdened with harsh economic
conditions affecting the energy market.
He stresses that countries can play key
roles in this matter.
“Energy companies can’t be successful
unless they actively collaborate with
the state. Businesses are only initiators of such integration,” he warns and
adds that NIS payments account for
14 percent of the Republic of Serbia’s
budget revenues and that the company
plans to become the regional energy
leader by 2020.
Jovanka Arsić Karišić, Management Board Chairwoman at
CEDEF, an expert organisation dealing in education, discusses
these topics for Energize and explains her view of the renewable energy sector as a platform for intensifying regional
energy integration.
“These projects are the future of regional energy cooperation,” says Ms Arsić Karišić, explaining this with the fact that
all countries have the same task to realise, namely to reach the
renewable energy target of 27 per cent by 2020.
This will be a chance for ensuring a closer regional integration.
“There are always possibilities for a more intensive cooperation. It is important to ensure continuity of the energy stability of each individual country and the region,” she points out
in her interview to Energize.
CEDEF has already established cooperation with Hungary,
Macedonia, Montenegro and Republic of Srpska, and this
organisation’s upcoming International Forum will concern
biomass as the main RES in Europe and Serbia.
Croatia’s distinguished economist Damir Novotny shares this
opinion. In his interview to Energize, he says that it would be
beneficial to regional countries to connect not only through
“
The BIOGOS project, which NIS
participates in, is an instance of good
regional collaboration, as it is not profitoriented; rather, it is aimed at developing
legislation and the state capacities
alongside fostering the exchange of
experience with the neighbouring
countries
”
Evgeny Metelev,
NIS Director of Department
for External and Governmental
Relations in Foreign Countries
energy policies but also horizontally, in production. All preconditions for this have already been met.
Croatia, Serbia, Bosnia and Herzegovina and Montenegro
alike have both logistic and natural resources and renewable
energy sources. He points out joint projects as particularly desirable here, especially on the Sava and the Drina, as well as
in coal, woods and biomass industries. “These are all potentials that we are not using. We lack investors,” says Novotny.
He points out that regarding these ideas, the EU can provide
good leverage given that the EU’s 2020 Strategy puts special
attention on the energy sector. “EU funds and budgets could
finance as much as 80 percent of the projects,” he concludes.
Macedonia is also looking to regional cooperation. Lazar
Gečevski, an energy consultant and former director of the
Macedonian Energy Agency, says that each of the former
Yugoslav countries is not sufficiently large for major energy
undertakings individually, and this is why joint action is
needed.
“The energy position of former Yugoslavia with its population
of 25 million was extremely good. Now we have partial problems, even bigger that before, because not all of them have
equally developed their energy sectors,” says Gečevski.
He warns that no one in the region uses European funds sufficiently for energy construction. However, he says, EU money
earmarked for energy is yet to come so the region, in this
expert’s opinion, should immediately take this opportunity.
23
24
intervIEW
interVIEW
Tanja Miščević, Serbia's Chief EU Negotiator
We will involve
experts in the
negotiations
Milica Bojović
The presence of Serbian companies in Brussels will become increasingly
important as EU negotiations continue, and this is why the opening of NIS
Brussels Office is an excellent move
"I believe that there are cooperation opportunities both in
Belgrade and Brussels, since the advice, assessments and
know-how of your expects can be highly beneficial to the negotiations," says Tanja Mišćević, the Republic of Serbia's Chief
EU Negotiator, as she explains to Energize how companies can
contribute to the process of EU integrations.
She adds that the presence of Serbian companies in Brussels
will prove to be increasingly important as the negotiations with
the European Union progress.
"This is why opening a NIS office in Brussels is an excellent
move," Miščević points out.
When asked if there were intentions to involve the most competent business and economic experts in the accession process
so as to bring maximum benefits to the country from these
negotiations in all areas, she replied: “Absolutely.”
"It is among our priorities to ensure transparency and inclusiveness of the negotiation process, which means that we will
seek advice from all stakeholders within negotiation groups. It
is in our best interest – to listen to industry professionals and
seek best solutions," explains Ms Miščević.
How is the accession process developing under
current circumstances and has it been affected by the
state of emergency caused by the floods?
"The negotiations are going as planned, screening has been carried out according to a set schedule and delegations have been
well prepared. This was the Negotiating Team's contribution
during the severe floods in Serbia, because we believe that these
processes in the country must not be halted. In addition, we have
informed our European Commission counterparts about the
scope of the disaster that had hit us and they showed us that the
EU is ready to help to mitigate the damage. A considerable part of
administration is working on these plans and projects development, but it does not affect the course of negotiations.”
What are the next steps ahead of Serbia towards its
EU goals? What do you see as the biggest challenges in
the accession process?
"We certainly plan to continue with the screening, that
is, the analytical reviews of our legislation's compliance
with acquis communautaire until March 2015. We have so far
completed both explanatory and bilateral screening for 11
of a total of 35 chapters. We are also making preparations
for a new phase of the negotiations i.e. chapter opening. This
means that we are beginning to outline our first negotiating
positions and action plans for the areas we expect to be first
covered by screening reports, namely Chapter 32 on financial control and Chapters 23 and 24 on the rule of law. We
are also preparing a revision of the National Programme for
Adoption of the Acquis, which will be a sort of the Government's plan on compliance with the EU agenda.
We will face the greatest challenges in agriculture, environmental protection, energy, transport and rural development. These
sectors are very complex, their harmonisation requires extensive funds, but Serbia is eager to reform these areas, because it
sees in them a significant potential for its development.”
Many reports warn of candidate countries often being
faced with problems with administrative capacities.
What is the situation like in Serbia on this matter?
"From the very beginning our Team’s preparedness has been
rated very highly by our partners from the European Commission. But this is the fact that has been highlighted by
25
26
intervIEW
Introducing Serbia’s energy sector into
the EU market should contribute to the
energy market’s liberalization, greater
usage of available energy sources, higher
energy efficiency and better utilisation of
renewable energy sources
European institutions for many years, as regards Serbia's institutional capacity. We have an experienced administration
working on harmonising domestic legislation with the EU
Acquis since 2004 and on the negotiations since 2005, and
afterwards on implementing the Stabilisation and Accession
Agreement. Serbia's Negotiating Team consists of around
2,000 highly experienced professionals in all fields, and they
will be joined soon by members of our core negotiating team
who will coordinate the process of negotiation with me on
some chapters.”
How has the administration proved so far? Are you
satisfied?
"I am very pleased and thankful to my colleagues for the effort and energy they invest. As I have already mentioned, it's
a team of experienced people who are very good in their jobs
but they are also strongly motivated as they believe that the
process they have worked on for years will modernise their
country.”
Could Serbia be faced with some special conditions
and ultimatums, apart from those related to compliance
with standards?
"As regards specific requirements to Serbia laid down in the
accession process, they are primarily political and wellknown. Regarding the harmonisation with European standards, we cannot claim that new conditions will never be im-
interVIEW
posed and this is not surprising. Namely, the European Union
is a moving target and a living organism in progress, so if the
acquis is amended, we will have to apply new standards. This,
for example, can occur with public tenders or food safety. Yet
this is a phenomenon we will encounter upon becoming an
EU member state as well.”
How does EU accession assist economic development?
And how is it significant for energy in particular?
“Energy is among the most significant areas of activity of
the European Union, which has traditionally invested efforts
to ensure competitive energy supply. The regulation of this
area affects the regulation of other sectors and therefore of a
country’s entire economic system. In this respect, the energy
sector’s impact on economy is crucial taking into account
its share in the Republic of Serbia’s national product and
budget. Energy is an industry indirectly linked to competition
and consumer protection, environmental protection, higher
employment rates, infrastructure, transport, agriculture etc.
Introducing Serbia’s energy sector into the EU market should
contribute to the energy market’s liberalization, greater
usage of available energy sources, higher energy efficiency
and better utilisation of renewable energy sources, introduction and application of state-of-the-art energy technologies,
improved energy-product supply safety, better state administration in this sector and strengthening of international
exchange.”
How important is it for Serbian companies to adjust
their business operation to EU standards? Can they otherwise remain competitive at all?
“We all need to adapt and learn to be competitive in the market of nearly 500 million consumers. This is a huge challenge
that can encourage us to be better, to improve, to modernise
and to open up possibilities in such a large market.”
How much money from EU funds is available to Serbia
in this stage? To what extent are businesses participating
in attracting that money with their projects and which
industries are the most common recipients?
It is among our priorities
to ensure transparency
and inclusiveness of the
negotiation process, which
means that we will seek
advice from all members
of negotiation groups. It
is in our best interest – to
listen to professionals and
seek best solutions
“Annually, Serbia has access to an
average of 200 million euros from the
Instruments for Pre-Accession Assistance (IPA). Various companies take
part in numerous projects as service
providers, contractors or equipment
suppliers, which brings them profit.
Most often, local companies are not
direct IPA beneficiaries, but there are
such examples in the energy and
traffic sectors as well as among the
companies developing innovation technologies.
Companies can also apply for EU programmes. Such practice will continue
in the upcoming 2014-2020 financial
period through new programmes we
will join. It needs to be taken into account that the amount of withdrawn
funds will depend exclusively on the
quality and success of domestic companies’ projects in tenders, given the
fact that no funds will be earmarked
especially for Serbia.”
27
28
industry&business
industry&business
Base Oils
New
Profitable
Business
Vojo Krkobabić
The most significant comparative
advantage of base oils project is the secured
raw materials base for the production
of naphthenic and paraffinic oils and
lubricants. The oils business that has been
moving into the company’s top gear has
great prospects to spread into new areas, as
the NISOTEC oils production clearly shows
The base oils production project being delivered by the
Refining Block on the Novi Sad Refinery premises is a new
profitable business that is to draw almost 120 million euros
of investment in the next two years. This investment is fully
based on the NIS ten-year development strategy of business diversification, which provides for broader range of
new top-quality products in the category of naphthenic and
paraffinic base oils and lubricants propelling the Company
into an intrepid showdown on the global arena. In a pooled
effort with a highly experienced Gazprom Neft subsidiary
Gazpromneft – Lubricants, NIS strategic team has undertaken a thorough marketing survey that suggested enormous
profitability of the production on the Novi Sad Refinery compound. The preliminary production plan sets the volume of
base oils output of this unit at approximately 180 thousand
tons annually.
Raw Material
The Novi Sad refinery output of new oils and lubricants to be
sold across Europe and North Africa is based in own exquisite
raw material base. This is Velebit, a naphthenic petroleum
type unique for Europe, which is named after a deposit in Serbia’s northern part – Vojvodina – where it is being extracted.
It is the source for producing naphthenic base oils and subsequently the final products: expensive transformer oils and
metal treatment oils, as well as primer coating for paint-andlacquer materials and plasticizing agents for polymers and
rubber. The total annual Velebit crude output ranges around
250 thousand tons. Europe’s single producer of oils and lubricants based on this type of crude supplied from Venezuela is
Sweden’s NYNAS.
The Pančevo Refinery is to supply another component
raw material to produce paraffinic base oils, specifically a
converted hydro treated residue (UCO) coming from the
Mild Hydro Cracking and Distillate Hydro-Treating Unit, or
MHC/DHT. This will be the raw material for paraffinic base
oils to subsequently produce another type of expensive
transformer oil for three types of motor, transmission and
industrial oils.
Exceptional Market
Advantage
The current market offer of the overal production of naphthenic oils and lubricants is hard pressed to meet demand
on the European continent, which calls for North American
supplies. An exhaustive sift probe supporting this investment envisages a growing demand for these products in
the next eleven years in the Balkans, south, central and
north Europe. Against this backdrop of a sole manufacturer of this kind of base oils located in Sweden more than
two thousand kilometers far from the heart of the region
concerned, NIS base oils production capacity in its very
center is highly advantageous, with its low-cost transportation along the Balkan major waterway Danube providing
convenience to South-East Europe consumers.
The completion of base oils production project rounds off the
refinery processing and broadens the product range, which
brings significant advantages to NIS as producer of naphthenic and paraffinic oils and the whole string of finished products
based on these raw materials. At this junction, Europe’s
output of paraffinic oils of the second group is shrinking, with
trend forecast for their upturn in the next five to seven years.
Gazpromneft-Lubricants will be highly instrumental in setting up an oils and lubricants production centre in this region
poised to supply entire Europe, Middle East and North Africa.
Gazpromneft-Lubricants is an indispensable partner to help
us deliver the strategy stipulating for our company to emerge
as a major world player in the industry.
The Novi Sad base oils production project abounds with logistical advantages like crude storage facility, components
reception and final products dispatch network, huge tank
farm, transportation by waterway as well as tank trucks
and railway tanks.
Another obvious advantage of the project is the production facility operation within a customs-free zone, which
will bring about additional channels for profitable marketbased business.
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industry&business
Serbia’s Best
What are base oils?
Base oils constitute the base of all lubricants – lubricating oils and greases and
significantly affect their main features. Naphthenic base oils are used to produce
oils for transformers and electrical switches, oils for cooling compressors, process
and rubber oils, metal treatment fluids, industrial bitumen and some of the lubricating oils and greases.
Naphthenic Base Oils
NEWS
Printing Industry
Tyre Production
Paints and Varnishes,
Chemical Industry
Electric Energy Sector
Car Tyre Industry
Plastics Production
Paraffinic Base Oils
Motor Oils
Industrial Oils
Transmission Oils
Agricultural Oils
Hydraulic Oils
Marine Oils
A huge impetus for the completion of
base oils project is a great success of NIS
oils and lubricants NISOTEC programme,
which is successfully implemented by
the Novi Sad Refinery. This programme
demonstrates a fast pace of growth of the
oils business within the company, with
great prospects for further development.
Over the course of the recent four
years the sale of NIS Novi Sad Refineryproduced oils and lubricants has been
steadily growing. Last year the market
share of NIS-produced oils and lubricants exceeded 20 percent in Serbia, as
compared to only two per cent back in
2009. NIS has now emerged as Serbia’s
leader in this market with more than 80
per cent of supply to major consumers of
oils and lubricants. The Company boasts
awards for NISOTEC items quality from
a great number of producers of vehicles
and equipment, such as Mercedes, Volkswagen, Volvo, MAN, Cummins, Renault,
ZF, Voith etc. The proven quality and
prudent business policies have made possible the supplies to authorised dealers of
Mercedes and Škoda vehicles.
In merely three years on the market,
NISOTEC has evolved from an unknown
brand into a household name and is now
the largest domestic market share brand.
Import ingredients are currently indispensable for the production of this oil,
however, once the base oils investment
project is complete it will be poised for
blending out of our own components.
Andrey Dyug,
Director of Project Office for the
Organisation of Base Oils Production
- The Base Oils Centre construction is planned to involve around
20 local companies specializing in mechanical and construction works, telecommunications, electricity networks, process
equipment design and installation. Almost 10 thousand people
will be directly or indirectly involved in the implementation of
this investment. The pivotal business effects of this investment
are: use of the Novi Sad assets and a revamp of production
process, strengthening of Serbia’s real economy by reinvigorating economic and production entities, Serbia’s increased foreign
trade balance, increased budget revenues levied from additional
taxes, gaining additional margin form the development of finished
oils production, consolidation of the complete oils business into
one hub, will bring about significantly diminished production and
logistics cost, as well a synergy impact from the processing of the
hydro treated MHC residues from the Pančevo Refinery.
Dmitry Vukolov,
Lubricants Department Director
- Base oils production project, exceptionally important for
NIS business operation development, for its diversification,
broadening of production range and opening of new sales
channels. We plan to output high quality products, five types
of naphthenic base oils out of the Velebit crude and four types
of paraffinic oils out of hydrocracking residue (UCO) created
in the Pančevo Refinery. New method of base oils production
along with the streamlined blending will constitute a foundation to create a new lubricants business in a pooled effort with
Gazprom Neft, the business to emerge as a leader in the southeast Europe and become one of major European players.
“It is also important that thanks to cooperation with “Gazpromneft – Lubricants“ the larger portion of base oils within our own
blending process we will be able to “transform“ into the finished
products and place them in that form on the market to gain
greater profit. It is our advantage that we already have a plan for
the next five to seven years stipulating the placement of 70 – 80
per cent of base oils within the best quality finished products.
Sales of the base oil solely would gain much lower profits, due
to the significantly smaller margins in such a case.
Naphthenic base oils are top quality
raw material to produce transformer and
process oils, greases and refrigerantlubricating fluids, with paraffinic base
oils used to make oils and oils for
hydraulic systems
TOP-NOTCH TECHNOLOGY
In the words of Andrey Dyug, Director of Project Office for the
Organisation of Base Oils Production, this project envisages
the streamlining of the existing capacities and construction of
new facilities within the Novi Sad Refinery compound, specifically: for hydro treatment (HDT), Hydrodewaxing and Hydrofinishing (HDW\HF) for the production of sulphur as well as the
units for amine hydrogen sulphide removal from gas. – The raw
materials and half-products, which currently cannot be sold
as quality products, after the most progressive technologies
are involved – ISOTREATING, deep hydro treatment under high
pressure of vacuum distillate of the naphthenic crude Velebit
and ISODEWAXING & ISOFINISHING, a selective cracking and of
paraffinic hydrocarbons saturation – will be used as the sole
raw materials to produce the best quality oils and lubricants in
full compliance with the EU requirements – says Dyug.
Base Oil Characteristics
Base oils to be produced out of the Velebit crude in the
Novi Sad Refinery shall have the following physical and
chemical properties: zero poly-cyclical aromatics, low
yield limit, resistance to oxidation, very low sulphur content and low volatility. Due to these features the finished
products are made with the use of base naphthenic oils,
which is their advantage. Tires made of naphthenic oils
have longer useful life.
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industry&business
Development Strategy for Serbian Bunker Stations
Defining
Leadership
Uroš Popović
Bunkering activity is becoming an
increasingly predominant form of
business, encouraging intense traffic
on the Danube River. Until recently,
ships that have been passing through
Serbia had almost nowhere to fill the
tanks with fuel. Although under the
original business plan, the products at
the forefront of corporate operations
are undoubtedly intended for the road
transport, the portfolio of the Petroleum
Industry of Serbia includes fuel supply
on the major river routes as well
industry&business
From the historical perspective, the river Danube has always
had strategic significance for Serbia. Hydrologically speaking,
Serbia holds a great potential for improving bunker station
networks, the potential that can match significantly more
advanced countries in the Old Continent. This position is extremely favourable for vessel supply especially those sailing
from Regensburg to Constance and vice versa.
DANUBE BUNKER
STATIONS
As the dominant navigational route providing Serbia with
588 km of middle course, allowing navigation and multimode transport, the Danube also represents a significant
pan-European Corridor VII and the strategic link with Europe
and Eurasia which should encourage the development of
trade, tourism and service support, especially because the
river transport is one of the cheapest. As it flows through ten
states, from its source in Germany all the way to its outlet
into the Black Sea, there are numerous bunker stations set
up at the distance of 2,888 km. In terms of significance and
the quality of services they provide, the ports falling under
the category of the distinguished ones comprise the Port
Rousse, Bulgaria, and Budapest on the territory of Hungary
(1640 km). In Slovakia we will certainly mention Bratislava,
providing complete bunkering service at the distance of 1,866
km, whereas in Germany we would certainly single out Passau (2228.38 -2233.45) and Regensburg (2373.00-2379.00 km).
In Austria there are five points: Linz (2,128 km), Enns (2,112
km), Korneuburg (1,942 km), and Vienna (1,920 & 1,929 km).
Ukraine is distinguishable by 61. Mile, and as far as the Republic of Croatia is concerned, there is currently one bunker
station, Nautica Vukovar (1335+500 km), synonymous with
the town it is located in, providing fuel and lubricant supply
services since 1999.
In accordance with the development strategy, two years ago
NIS launched a new business- ship bunkering, i.e. supplying domestic and foreign vessels with the superb quality
EURO Diesel. In this way, the Petroleum Industry of Serbia
guarantees a reliable fuel supply on the important waterways in the country to all interested shipping companies.
Considering the fact that the demands of domestic shipping
companies, as well as foreign fleets in transit are estimated
at approximately 40,000 tonnes per year, the Bunkering Sector promotes a development plan implying the expansion
of the existing network. Since, taking into account current
and projected needs of the domestic fleet, coupled with all
the other international lines available, the necessity for the
expansion of the existing facilities is imperative. Current facilities include three modern, fully equipped bunker stations,
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industry&business
Bunkering
in Figures
The total capacity of the NIS bunker stations is currently
5.622 t
40.000
of euro diesel, which ensures a constant availability
and secure supply to our customers at every moment
Back To Where
It All Started
Mihajlo M. Đurovic says that every
beginning is hard, and so was the beginning of the bunker supply project in
the territory of the Republic of Serbia,
which, according to him, was expected
after all.
positioned to extremely favourable
strategic locations on the Danube - in
Novi Sad, Veliko Gradište, and since
recently in Prahovo.
Mihajlo M. Đurovic, Director of the
Bunkering Sector operating within NIS
j.s.c., states that the company's top
competitors tend to be Vienna, Rousse
and 61. Mile (near the Port of Reni in
Ukraine) bunker stations.
The total capacity of the Novi Sad bunker station amounts to 2,000 tons, and
the one in Veliko Gradište to 1,280 tons.
The latest in a series is the Prahovo
bunker station with the total capacity
of 2,342 tons. Namely, a significant
capacity of the bunker stations ensures
a great stability in supply, guaranteeing
an exceptionally high level of reserves
and the possibility of providing services
without any delays.
-Namely, NIS j.s.c. used to supply
vessels with fuel at several installations, but these operations were put
to an end after the NATO bombing in
1999 due to the significant destruction
suffered by many facilities. After the
company’s acquisition by Gazprom
Neft, the logical step to follow was to
re-activate the bunkering operations
among the rest. Also, I have to add
that the major problem we encountered was the lack of legal regulations
in place which would regulate this
activity and significantly shorten the
implementation of many projects. In
December 2013, the adoption of the
Act by the Government of Serbia followed, governing vessel fuel supply
in the technical sense. Elaboration
of this regulation was supported by
our experts with an international
experience, making thus the use of
the experience of the Danube River
tons of EURO diesel needed by the vessels on
the Danube through Serbia
1.000
530
bunker services
expected in 2014.
Basin District countries in particular,
such as Germany and Austria - says
Đurovic.
of the total vessels
docking are overseas
883
Two years following the official commissioning of the first bunker station
in Novi Sad, visits and sales reported a
growing trend.
Should we compare the first four
months of 2014 to the same period of
2013, the results would reflect an evident 15 per cent increase in the sales emphasizes Mihajlo M. Đurovic. - Also,
when it comes to commercial fleet,
which constitutes the greatest customer segment, we can say that, compared
to 2013, recording the total number of
883 vessels calling at the station for
fuel supply, these figures are expected
to rise. The 2014 Calendar Year End is
70 %
cruisers dock at Belgrade
during the season
vessels docked at NIS
bunker stations in
2013.
CZECH
REPUBLIC
POLAND
REGENSBURG
GERMANY
UKRAINE
SLOVAKIA
LINZ
VIENNA
BRATISLAVA
HUNGARY
AUSTRIA
MOLDOVA
BUDAPEST
SWITZERLAND
ITALY
SLOVENIA
ROMANIA
MOHACS
CROATIA
NOVI SAD
BOSNIA AND
HERZEGOVINA
GOLUBAC
BELGRADE
SERBIA
MONTENEGRO
BUCHAREST
VIDIN
BULGARIA
FYR OF MACEDONIA
CONSTANTA
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36
industry&business
expected to record more than 1,000
registered bunker operations. As far
as the domestic/foreign fleet ratio is
concerned, as expected , the overseas
transit fleet seems to prevail 70 - 30- as
stated by Nikola Bogicevic, Expert Sales
Co-ordinator, Bunkering Sector.
PREVENTION
ECOLOGY
All bunker stations have been
granted permissions by the competent authorities, primarily Decisions
issued by the MOI as a documentary
evidence of compliance with the fire
safety technical requirements, as well
as regular inspections conducted by
the competent authorities.
In particular, when it comes to the
oil spill protection, all our bunker
stations possess adequate protective barriers, equipped with special
absorbents for collection of potential
spills, and special "Euro-couplings" for
spill-free and safe fluid handling, the
so-called “drybreak loading” preventing spillage during loading. Also, there
is an additional automatic shut-off
system to prevent potential overflow of
a shipping tank. As far as the fire safety
is concerned, our bunker stations have
both mobile and stationary systems
equipped with fire safety systems with
manual and automatic remote controlled water cannons. These systems
are subject to regular inspections and
functionality checks - specifies Đurovic.
PLANS AND
PROSPECTS
In the forthcoming period, as explained
by Đurovic, the commissioning of the
Smederevo bunker station is scheduled,
which will exclusively be intended for
domestic fleet operating in the territory
of the Republic of Serbia. - This bunker
station is expected to launch its formal
operations during the upcoming summer
season. As far as the Bezdan installation
is concerned, currently it is in its reconstruction phase, whereas the ongoing
works should be completed by the end of
the year- Đurovic concluded.
Ljubinko Savic, an Independent Expert
on Energy Issues from the Serbian
Chamber of Commerce states that a
bunker station does not need to be only
a place to fill up the ship tank, moreover,
it can be a perfect rest area offering
minor servicing in addition. - One of the
emerging opportunities to recognize and
act on under this development strategy
is the construction of the LNG (liquefied natural gas) vessel supply stations
servicing the ports to be included in the
TETN (Trans European Transport Network) system. The construction of LNG
stations is envisaged under the proposal
of the new EU Directive governing alternative fuels infrastructure across the
EU. The Danube River is certainly a part
of the TETN system, with Belgrade and
Novi Sad marked as so-called "nodes" intended for future network of intermodal
transport system - clarifies Savic.
-There is also room for improvement
seen in taking a position in the market
of providing fuelling services for the
so-called "White fleet", the popular river
cruisers which can be seen on the Sava
Port.. Around 530 cruisers dock at the
Belgrade Port during the season, which
lasts for approximately seven months.
We have already undertaken certain
activities aimed at implementation of
this project - highlights Đurovic.
First Class Fuel
Providing fuelling services for domestic and international
ship liners falls under the scope of the portfolio comprising a full product range that can be classified into the
category of premium fuels in all parameters. With the
strong desire to provide its customers with the higheststandard service, NIS j.s.c. in line with its firmly established reputation, opts primarily for the high- quality fuel
that complies with the applicable standards at the international level to seal this leadership position. Namely, the
Euro Diesel produced by the Petroleum Industry of Serbia allows maximum ship performance, proper functioning, ignition and operation of the engine. Produced under
most stringent specifications, the EURO Diesel quality is
fully compliant with the European standard EN 590.
For customers in the transit fleet,
supplied through customs warehouses,
fuels are less costly for the amount of
VAT and excise duties, in accordance
with the applicable legal regulations of
the Republic of Serbia in place. In other
countries of the Danube River Basin
District, there is a VAT burden imposed
on fuel, even though they get the VAT
refund indeed, as a result of refraction
proceedings, but it is a time consuming
and often expensive process
Also, the Petroleum Industry of Serbia shall attempt to expand
the scope of its activities and introduce providing fuelling
services for Sports & Recreation fleet in the forthcoming period.
If we take Belgrade as an example, which is positioned on two
rivers and features a large number of small vessels berthed
at the growing number of marinas, and at the same time take
into account the fact that there is no station to provide fuelling
services, it is clear that it is more than necessary to regulate this
area in a safe and environmentally friendly manner, concludes
Bogicevic , Bunkering Sector, NIS j.s.c.
Upon receipt of the goods at the bunker station, an
independent quality control specialist performs a fuel
sampling sourced from the ships carrying the cargo. Then
the samples are to be tested in an accredited laboratory. It is only after obtaining the certificate of quality,
that we proceed to unloading. Upon receipt of the fuel
at the bunker station, the sampling procedure follows
once again coupled with the quality and quantity controls
respectively. Certificate of quality for fuels from the
bunker station tank is submitted to the customer along
with the shipping document, and one-litre arbitration
sample sealed in the specimen bottle marked with a
number registered in the supporting shipping documents, i.e. a dispatch note accompanying the goods
- bunker delivery note.
003
Nikola Bogicevic, Bunkering Sector
NIS j.s.c. says that bunker stations
operated by the Company employ
highly trained personnel, i.e. the crew,
which represents the key and one of
the most efficient protection from any
environmental threat owing to the
strict procedures.
industry&business
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38
region
region
Bulgaria
Energetic
opening
for business
Beloslava Petrova
Experts are expecting a rearrangement in the Bulgarian petroleum
product wholesale and retail markets. The entry of a new player,
NIS Petrol, has been described as highly energetic and
30
Gazprom-branded stations have opened
in that country to date
Bulgaria is one of the priority targets for NIS retail network
development in the region, since it provides the strongest
synergy effect and creates a favourable environment for
market entry.
The subsidiary NIS Petrol EOOD is registered in this country;
it is currently in possession of 42 assets – petrol stations and
construction land. The first GAZPROM-branded petrol station
in Bulgaria opened in mid-2013 and by late 2015 there will
have been more than 58 GAZPROM facilities in operation in
that country. NIS Petrol has also acquired a storage facility in
Kostinbrod near Sofia having thereby created opportunities
for fuel distribution from Serbia to its own retail facilities, as
well as for launching wholesale.
A NEW PLAYER ARRIVES
NIS Petrol's entry into the Bulgarian market has been „highly
energetic,“ as commented by the eminent magazine Kapital
- Top 100 companies in Bulgaria that publishes research,
current information, analyses and trends in Bulgaria's economy annually.
- An investment player with a highly energetic entry, setting
out to grow in wholesale and retail and aiming at taking a
market share in the upcoming period” is how this magazine
describes NIS Petrol when analysing the fuel market.
Bulgarian economic experts are expecting a market rearrangement and changes in the sector, both in wholesale and retail, in view of the fact that NIS Petrol relies on importing fuel
from its Pančevo Refinery, which is owned by NIS. NIS Petrol
has also invested in purchasing a new fuel storage facility in
Kostinbrod with a storage capacity of 15,650 m3.
So far 69 million euros have been invested in petrol station
network development and the acquisition of the oil storage
facility. “Petrol station network development is crucial for attracting new clients and increasing fuel sales. The company's
goal for this year is to open more than ten petrol stations, says Ivan Kostadinov, General Manager of NIS Petrol Bulgaria.
Meanwhile, NIS Petrol EOOD has won numerous awards
including the “Successful Market Entry Award,” presented by
the eminent economic and political magazine Economy, and
“Investor of the Plovdiv Region Award” in April 2014.
“
Our company's goal is to provide
high-quality fuel and attractive products
to our clients. Furthermore, our goal is to
set a new, high standard of service. It is
very important for us that each customer
returns after the first visit to one of our
petrol stations and becomes our
partner and clienti
”
Ivan Kostadinov,
General Manager
of NIS Petrol Bulgaria
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40
region
region
In order to attract corporate clients,
the Company implements numerous measures and tools. In the first
SUCCESS ACKNOWLEDGED
So far
Meanwhile, NIS Petrol EOOD has won numerous awards, including the "Successful Market Entry Award", presented by the
eminent economic and political magazine Economy, as well
as the "Investor of the Plovdiv District Award" in April 2014.
NIS Petrol EOOD received the "Investor of the Plovdiv District Award" for the development of its retail chain under the
GAZPROM Petrol brand. Daily Maritsa, the leading newspaper
in the Plovdiv district, traditionally awards the companies
making a major contribution in terms of investments and tax
payment in the region.
At the moment, there are seven petrol stations in the Plovdiv
district operating under the Gazprom brand. On this occasion, Ivan Kostadinov said that the company had come to the
Bulgarian market to stay for long.
- Our company's goal is to provide high-quality fuel and
attractive products to our clients. Furthermore, our goal is to set
a new, high standard of service. It is very important for us that
each customer returns after the first visit to one of our petrol
stations and becomes our partner and client, said Kostadinov.
BULGARIA
69 million euros
have been invested in petrol
station network development and the
acquisition of the oil storage facility
five months of 2014 these activities
led to a reported fuel sales growth of
52 percent. The number of contracts
concluded directly with corporate
clients grew by 31 percent in average,
while the average increase in Gazprom cards, which offer special terms
of use, amounts to 36 percent in the
observed period.
Gergana Sheytanova also stresses
that - the fact that clients have been
successfully won over from competitors results from NIS Petrol's competi-
BOTH REVENUES
AND PRICES GROW
The Bulgarian market has been characterized lately by
reduced gasoline consumption and an increase in diesel and
LPG sales volume. The increase in diesel consumption may
be explained by an increasing use of the fuel in transport
industry, as well as by the emergence of modern and more
efficient engines.
Fuels have traditionally been the pillar of economy. As the
data of the magazine Kapital - Top 100 Companies in Bulgaria
show, in 2012, the revenues from this industry for the first 20
companies grew by 4.45% on average year-on-year. Meanwhile, average wholesale and retail fuel prices rose by 3.21%
compared to 2011. In retail, the growth was 4-5%. The sales
increase resulted from higher prices, and not from the overall
sales volume increase, the magazine says. This, naturally,
does not apply to all players - some have sold more compared
to their competitors.
tive financial offer – discounts, flexible
payment terms and product quality.This business segment is expected to
continue its positive trend through
corporate debit card sales and the possibility to use these cards in our petrol
station retail network abroad – in Serbia, Romania, Bosnia and Herzegovina,
as well as through partnerships with
international companies such as DKV,
UTA, E100, Evrowag.
In Bulgaria, NIS Petrol EOOD has
introduced a modern concept of
petrol stations that offer a variety
of additional services, bringing
consumers to the focus attention.
Gergana Sheytanova, Corporate Sales Manager in NIS Petrol
Bulgaria, says that corporate clients have various shares in
the total fuel consumption depending on fuel type.
duces top standards, and its products
are compliant with the latest European
standards. Gazprom petrol stations offer
top-quality fuels which improve engine
performance and lifecycle, reduce
exhaust gases and therefore bring less
damage to the natural environment and
more pleasure in driving. Each petrol
station has a convenience store, a restaurant and a cafe. Stations also provide
- Our company's goal is to offer highquality fuel and attractive products,
tailored to our clients' needs. It is also
our goal to set new, high standards
for services. It is highly important to
us that each customer returns after
his/her first visit to one of our stations and becomes our partner and
a long-time client,- said Ivan Kostadinov, General Manager of NIS Petrol
Bulgaria.
other services such as wireless internet.
- The advantage of Gazprom petrol
station retail network lies in the balance between fuel price and quality,
which distinguishes this network
making it more attractive to our
BUSINESS IS THE KEY
Gazprom as a premium chain intro-
clients and their preferred choice.
This is a successful formula: to attract
clients, to make a trademark recognisable thus building loyalty,- explains
Ivan Kostadinov, General Manager of
NIS Petrol Bulgaria.
In Bulgaria, NIS Petrol EOOD has introduced a modern
concept of petrol stations that offer a variety of
additional services, bringing consumers to the focus
attention
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42
ENVIRONMENT
Environment protection
WASTE
THE WASTE
Nenad Stanojevski
Serbia’s industry faces numerous
problems concerning the adequate nonhazardous waste disposal, hazardous
waste in particular.
NIS hazardous waste management
system made novel technologies part and
parcel of its operation, seeking to reduce
hazardous waste quantities
ENVIRONMENT
Serbia’s factories have generated more than a million tonns
of historical hazardous waste in the past, with up to 200.000
tons of new waste piling up every year and being randomly
disposed of. The recent floods that befell the country and
the whole region, have yet again highlited the importance
of responsible waste management, the hazardous waste in
particular, as its irresponsible random disposal might, under
the circumstances, have a devastating environmental impact.
Siniša Mitrović, advisor to Serbia’s Chamber of Commerce
chairman, describes the aftermath of the floods in Serbia as
both a predicament and an opportunity. – The time is ripe for
new solutions and new technologies – Mr Mitrović said.
Hazardous waste disposal is a pressing problem that has now
come to a head, as currently there is not even reliable data on
the quantities of hazardous waste being generated.
In the words of Radmila Šerović, who heads the Waste
Disposal Department in Serbia’s Agriculture and Environment Ministry, amendments to the Waste Management Law
provide guidelines for responsible hazardous waste management, specifically its recycling. – Endorsement of this law is a
priority, as it is to determine criteria stipulating under what
circumstances waste can be considered raw material. We seek
to set up a plant in Serbia for mechanical and chemical treatment of waste, and the location for it is soon to be determined.
This incinerator is needed to further treat the communal and
medical waste. We have been making the respective efforts
based on National plans and reports – Ms Šerović said.
Tatjana Đurić, assistant secretary for urban planning, construction development and environmental protection in the
Autonomous Province of Vojvodina, points out that the hazardous waste management pivotal problem is the inexistence
of national plant for mechanical and chemical treatment
of hazardous waste and regional hazardous waste disposal
areas envisaged by Serbia’s spatial planning, inadequately
solved management of packaging waste contaminated with
hazardous substances as historical contamination. – The current problems might be solved by putting urgently in place a
national plant for physical-and-chemical treatment of waste
and another five regional waste disposal areas in conformance with the National Waste Management Strategy, as well as
by raising public awareness - asserts Tatjana Đurić.
EU SUPPORT
European Union also lends its hand in settling the issue. Rainer
Freund, project manager for environment protection and
agriculture within EU Delegation to Serbia, says that hazardous
waste makes up only 4% of the EU-generated waste. However, if
not properly treated, hazardous waste might cause great problems both to humans and environment. Around 25 per cent of
EU-allocated funds are intended for environment protection,
specifically 700 million euros has been set aside for the purpose
since early 2000. In the period since 2004, 60 million euros
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ENVIRONMENT
ENVIRONMENT
have been earmarked to facilitate Serbia’s seeking solution
for waste management – Freund points out. According to
him the largest portion of funds has been used to construct
facilities for communal waste management in Serbia’s
towns of Užice, Pirot, Sremska Mitrovica, Šabac, with more
venues of the sort still to come in the future. – The allocated funds were also partly intended for the management of
specific waste streams in Serbia, such as medical waste and
Serbia is expected to prevent the untreated landfilling of this
waste. A feasibility study is being drafted for Serbia’s first
industrial waste treatment. Furthermore, an agreement has
been reached with the country’s government to put together
the National Hazardous Waste Management and Action Plan
– this calls for an assessment of all waste streams, including
the specific ones and creation of a long-term framework for
priorities and investment in this realm – says Freund.
WASTE MANAGED BY
NOVEL TECHNOLOGIES
Svetlana Duvnjak, NIS environment protection sector director
highlighted the problems facing Serbia’s industry in terms of
appropriate disposal of non-hazardous waste, in particular the
hazarous one. – Scarce operatiors possessing licences for storage, treatement, and most importantly disposal of industrial
waste, poses a serious problem for us, as it hampers the statutory handling of waste. The capabilities belonging to several
“
NIS hazardous waste management
system made novel technologies part
and parcel of its operation, seeking to
reduce hazardous waste quantities
”
Svetlana Duvnjak,
Director
NIS Environment Protection Sector
operators, who in effect manage the communal waste landfills,
are insufficient. The hazardouse waste generated by industrial
production is required to be exported, which significantly increases the waste management cost – Ms Duvnjak says.
The NIS company, on top of numerous other problems, and taking into account organisational complexity, as well as the wide
plethora of hazardous waste generated annually, has managed
to properly dispose of significant quantities of hazardous waste.
- We seek the soonest permanent disposal of all generated
waste, hazardous in particular – she states.
According to her, in terms of hazardous waste management
NIS has been actively reducing the quantities of hazardous
waste by incorporating ultimate technology in its operation.
The company obtained a drilling mud recycle plant for oil and
gas exploration process, as well as tank cleansing device, which
significantly reduces the quantity of solid oil waste (up to 70%),
and the Spent Acid Regeneration Unit. These activities have
significantly diminished the waste quantities, however, the
problem is still not settled...
DRILLING RIGS
NEAT AND DRY
Over the course of 2013 NIS outfitted its four drilling rigs with
a “Dewatering System“ which puts in place a flocculation
circuit with two hydraulic centrifuges.
Dewatering System supplants disposal of spent drilling mud
(working fluid used in drilling) in mud-storage pits at the very
location of drilling well construction, while minimising the
drilling negative environmental impact.
This type of drilling meets the most stringent occupational
and environmental safety standards. It envisages a continued
draining of mud-storage pits and its disposal at dedicated
landfills. So, this is a closed-circuit system, which ensures a
maximum soil protection from contamination and conforms to the strictest environment protection standards.
The completion of this project has brought about adequate working conditions, both in terms of environmental
Environment-wise pit-free drilling ensures:
• reduced drilling mud required for drilling, which, in turn
diminishes the quantity of spent fluid (bentonite clay with
The dewatering system implemented
by NIS makes it possible to protect the
environment, above all the ground, and
ensures occupational safety and health
for the employees during
drilling operations
some chemicals) and drilling cuttings,
• luid phase may be used for makeing the drilling mud or
freely disposed of in the environment,
• during drilling the spent drilling returns are removed into
metallic containers, which prevents soil and ground water
contamination,
• reduced overal period for well completion (high pace drilling, bigger productivity), thereby the impact time of drilling
on the environment (chemicals handling, equipment operation, use of vehicles etc. ).
protection, soil protection most importantly, and in terms of providing safe and healthy workplace for drilling
opertors. The incorporation of this equipment will result
in more efficient and prolific use of available resources,
whereby environment-wise the impact is evident, as
mud pits digging becomes redundant, there will be no
negative effect on soil and the whole drilling process will
comprehensively diminish its netative environmental
effects.
MOBILE TANK CLEANSING
According to Predrag Plančak, manager of HSE Unit within
NIS Oilfield Services, the implementation of this project, in
addition to the perfected environmental protection, we will
have improved occupational health and enhanced working
conditions at the very locations, drilling rig compounds.
The crude and its products storage process during extraction and refining as well as the sales and distribution of
petroleum products, involves a great number of tanks (over
and underground), which require regular cleaning once in
10 years. Estimated quantities of oily waste generated in
the process of tank cleaning in one year is 3000 m3. In 2013,
NIS acquired a Mobile plant for tank cleansing and crude oil
residue. By treating this residue this plant significantly diminishes the oily waste quantities ( up to 20 per cent of the
overall crude oil residue in a tank) which reduces the cost of
oily waste treatement and significantly reduces the area for
waste disposal.
- Pit-free drilling project, other than putting in place the
gear for treatment of drilling fluid (mud), shall greatly
diminish the risk of wet and slippery surfaces at locations,
it will make possible easier sanitation management at
drilling compounds and inside the personnel housing units,
as well as conditions for safer vehicle movement (lorries,
car-lift trucks, cementation rigs...) around the compounds Plančak says.
Major economic effect is achieved in the quantities of petroleum products set off from the residue and subsequently
recycled in production (depending on the type of petroleum
products, this percentage is between 60 and 80). Available
capacity of the plant makes possible the treatment of crude
oil residue of 10 cubic meters per hour. This practically
means that the refinery tanks with the highest level of residue may be cleaned in only ten days.
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Slotting Graduates into Jobs
FIRST CHANCE
Providing employment to the young requires well-thought-out
corporate-subsidised vocational practice, overhaul of education
system along with encouragement of entrepreneurial spirit
Vesna Lapčić
Youth unemployment figures cause alarming concern both in
developing countries and in west European states. An entire
generation of people younger than 25 face a bleak prospect of
failing to enter the labour market. The European youth unemployment rate is 23 per cent according to official data. Only
34 per cent of EU denizens aged between 15 and 29 employed,
majority of this group being part-time workers. The problem
is especially pronounced in some EU member-states in the
east and south of Europe, which along with the very high
unemployment rate among youngsters are plagued by brain
drain. In the future, these countries might even experience a
shortage of qualified workforce.
Serbia’s Labour Ministry said in its last year report that 50 per
cent of the young in the country are jobless. World Economic
Forum’s most recent Global Competitiveness Report ranks
Serbia third in terms of brain drain. Circumstances are not
more cheerful across the region. Youth unemployment rate
stands at 48 per cent in Croatia, 53 in Macedonia and staggering 57 in Bosnia-Herzegovina. The young are typically the first
to face the loss of employment in the time of crises.
INVOLVE THE BUSINESSES
There has been a raft of European Union activities intended
to provide the young with jobs, with respective allocation
of funds, which makes the leading EU members assured
that the existing programmes will bring about favourable
outcome over the course of the next two years. One of the EU
countries’ central programmes envisages the involvement
of private businesses in settling this issue, as state agencies
alone cannot cope. As German Chancellor Angela Merkel put
it: - Companies create jobs, not politics.
Along these lines the “Adriatic Initiative for Employing the
Young” has been launched. As many as 21 companies operating in the Balkans, including NIS, have joined the initiative. The
signatories to this cooperation charter pledged to bring young
people aged between 18 and 30 into the labour market by offering them employment according to their corporate needs.
This Charter was signed at the international “HR Business
Arena 2014” held in Dubrovnik this time round. This was the
12th conference organised by Infoarena. Karmen Majetić
Pavić, the conference programme director, who also runs the
“Tagoras” company used the opportunity to make public the
corporate pledge to pool effort in the next three years to diminish the unemployment rate by creating joint programmes
and providing education.
– This initiative emerged in the aftermath of great unemployment among the young world over, especially in the Balkans.
Its objective is to involve the signatories in the settlement of
the issue. Each one is to appoint a representative and set up a
small association to provide the exchange of information on
the ways to employ the young and involve them in their training programme – Ms Majetić Pavić explained.
She went on to say that the objective is to inform the young
and pinpoint the businesses having the youth employment
programmes.
The conference was attended by more than 200 participants
from 17 countries. NIS used the opportunity to present its two
projects “The Power of Knowledge” and “NIS Chance”. “The
Power of Knowledge” project envisages partnership with education institutions in the country to help them train quality professionals for subsequent employment in NIS. This cooperation
made scholarships available to many students, gave them opportunity to undergo vocational practice and further develop,
acquire new knowledge and deliver research projects.
European Bank for Reconstruction and Development has
thrown its weight behind the Initiative of Dubrovnik. Vedrana
Jelušić Kašić, EBRD Croatia director, pledged to make the entire initiative part of their projects. “This would represent our
clients’ commitment, in a way, to employ a certain number
of the young, or at least revamp their employment rules, or
provide training”, she claimed.
More than 700 young people has found job through NIS “First
Chance” programme of employment for inexperienced youth. 90
per cent of them are still on the company staff. This year the company plans to give a chance to another 150 young people to work.
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for the youth employment is a reform of educational system
along with the involvement of private companies by providing serious vocational practice for the young. – It is a fact that
the young are extremely incompetent upon graduation and
that companies perceive employment of the young as a loss.
This is why a greater number of companies ought to develop
prudently devised vocational practice for which the young
would get paid as they train. Currently, there are precious little
programmes of the sort, and they ought to be compulsory for
both the companies and the students, Ms Stanković points out.
NIS representatives, who attended the conference, took part
in panel discussions focusing on talent management and the
future of trade, i.e. which professions and job profiles will be in
employers’ demand in the near future. The focus was also on
the problem of employers’ readiness to absorb new generations of employees, the young often described as Generation
“Y”, with their special outlook, value system and demeanor in
the work place.
UNIVERSITIES
AND COMPANIES
Public sector, state agencies and education system are to be
involved in the entire Project.
Numerous surveys found that upon graduation the young are
not ready for labour market and that it is not an easy task to
find up-to-the-mark professionals to meet high requirements
of modern business operation, which makes close cooperation
with universities a must. A pervasive acute question in the EU
countries is a wide gap between the skills acquired by the young
professionals in their curricula and the employers’ needs.
Neda Stanković, who coordinates Smart Collective – Serbia’s
Youth Business programme, says that a pivotal pre-requisite
Nataša Stamenković, NIS HR director, says her company is
focused on the newcomers.
- A lot is being invested in the cooperation with universities
that train the staff we need, as it is crucial for a long-term sustainable development of NIS. It is not always possible to find on
the local market specific professionals to meet high requirements of modern operation of our company. So, we make efforts to shape the young professionals before they come on NIS
staff, while they are still students. We try to compel them to
“attach” with NIS, to start perceiving our company, before they
graduate, as a desirable work place, hence to develop loyalty
towards the future employer. Other than that, as they work
with us, we convey to them the business operation rules of the
best world practices. The young are quick in gaining experience, skills and capabilities to assume responsibilities in the
Company’s pivotal positions – said Nataša Stamenković.
The Dubrovnik conference participants were informed of NIS
vibrant employment of the young and the company’s established cooperation with two biggest universities in Belgrade
and Novi Sad, involving scholarships for students in the country and abroad, creation of curricula in conformance with the
corporate requirements, exchange of knowledge between NIS
professionals and academics, outfitting classrooms and supporting competitions in physics, mathematics, chemistry and
Russian language.
Milan Matić, a junior engineer in charge of power generating
equipment in the Infrastructure and Operational Support Department of Exploration and Production, came on NIS staff on
1 July in the capacity of junior engineer for power generating
equipment through the “NIS Chance” programme.
- This is my first work experience, so it is very important as the
employment came right on the heels of my graduation, which
brought about a continued process of further development and
professional progress. My job is primarily about drafting transformer stations mains supply block diagrams as well as bore
holes mains supply block diagrams. In addition to this I moni-
Serbia’s Labour Ministry said in
its last year report that
50 %
of the young in the country are jobless.
World Economic Forum’s most recent
Global Competitiveness Report ranks
Serbia third in terms of brain drain
tor diesel electric power units operation. The experience gained
in making analyses, design briefs for electric power equipment
and cable networks, monitoring the electricity consumption, as
well as the acquaintance with functioning and organisation of
a major company as NIS is really of huge importance – he says.
Karmen Majetić Pavić has announced another HR Arena for
late September in Croatia, with another one to be held early
October in Belgrade, where the local challenges will come
under operative discussion.
- We aim to somehow set in motion the consolidated efforts by
the economy and the state, because we see that state agencies
cannot cope with the youth employment problem, and this is
our future - Majetić Pavić said.
On its way to the European Union Serbia is in store for obligations in terms of providing employment to the young. It
is not going to be an easy task, unless these initiatives are
implemented. This is unless the state is poised to increase
its already cumbersome public sector, which would spell
bankruptcy for the country. To be specific, the European
Commission in its annual survey of growth and development (2013), pointed out that the member-states are to
provide to the young a successful transition from education system into the realm of employment and to actively
facilitate development and implementation of programmes
and arrangements for education, employment and social
inclusion of the young. One of the guarantee arrangements
for the young is based on the rule to provide each individual younger than 25 with employment or internship within
four months of their graduation. Croatia has accepted this
arrangement as soon as it acceded to the European Union,
seeking to improve the position of the young.
Entrepreneurial spirit
strengthening
To bring about the youth employment, educational
reform along with vocational practice, it is essential
to develop entrepreneurial spirit. 70 per cent of the
young people in Serbia wish to get employed in a
state agency, which, in her words, reflects the culture
and parental advice. – Parents typically claim that
for their children the most important is to land in a
secure job. Young people are pretty much afraid of
failure, so risk is not something plausible. This is why
it is essential for the state to provide incentive to the
youth entrepreneurship by offering tax breaks, and
encouraging banks to allocate funds for this. People
with developed entrepreneurial skills, even if their
private business fails, are subsequently much better
equipped to find a job due to their profound familiarity with business processes – explains Neda Stanković.
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Interview, Novak Đoković
Energy of
Success
Nenad Stanojevski
Novak Đoković, one of the world's top
tennis players, speaks for Energize
about his road to success, believing
in himself and his goals, rivalry,
team work, Serbia and other topics
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What guided you through your
formative years and gave you
strength to carry on and persist with
your goal to become the world No 1?
First and foremost, it's love. Love for
tennis, the sport I breathe, live and enjoy every day. When you love what you
do, it’s far easier to overcome all the
obstacles in front of you. You don’t find
it hard to train five or six hours a day,
abiding by a strict schedule of activities
and rest, while your friends go out to
concerts or clubs. You don’t find it hard
to sacrifice other things either, knowing
that you are dedicated to your goal to
rise to the summit and that your family
and the people closest to you support
you. When success comes, others start
supporting you as well, more and more
people start encouraging you, believing
in you, expecting you to give your best,
so soon you find you simply don’t want
to slow down or back away.
You are known for your belief
that nothing is impossible and you
are a living proof of that. In Serbia,
however, people often seem to give
up easily. How does one motivate
oneself to keep trying even when
nothing seems right? Have you yourself ever come close to giving up?
You must believe in yourself, in what
you do. It is important to be surrounded
by people who will guide you and give
you the strength when you need it, and
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not to pay too much attention to what
others say or think. It is important to
stay focused on the goal and rise to
face the challenges encountered on
the way. That, of course, is not an easy
thing to do. I myself nearly gave up
several times. In 2010 I even considered
leaving tennis altogether. I kept asking
myself if I was able to outdo Federer
and Nadal; the pressure was huge, because I had failed many times playing
with them. I knew, however, that I had
to beat them. Luckily, I succeeded.
How did Serbia winning the Davis
Cup help boost your self-confidence
and energy on your way to the top?
In fact, that victory marked a turning point in my career and helped me
overcome the crisis I have mentioned.
The 2010 title is one of the nicest things
that has happened to me since I started
playing tennis. We celebrated before
20,000 fans that day, the emotions were
really special, unforgettable and beautiful. That trophy meant a lot to me; it
gave me the inner strength so, carried
by that success, I embarked on the 2011
season and everything that followed.
What does playing for the national team mean to you, even when you
are the world number one tennis
player?
It is an honour to represent my country
through sports. I carry Serbia in my
heart, and that is not a cliché - it has
a special and deepest meaning for
me. The more so if you are among the
world’s best tennis players, because
you are constantly in the spotlight and
scrutinized much more than earlier.
This is why I try to represent my country and myself in the most appropriate way, which was not the case in
the past, unfortunately. Serbia had its
share of tough times in the economy,
politics, and even in sports. That is why
every athlete needs to represent it in
the best manner, showing the world
that sport can influence individuals
and bring about positive changes in
every sense and that not everything is
as bad as the foreign media report.
What was your role in influencing top tennis players to turn to
their countries and play for national teams? Do you believe that you
helped raise the Davis Cup standard?
Each of my colleagues makes their
own decisions regarding what's best
for their professional career and when
to play the Davis Cup tournament. I
know them all quite well, those are
my friends and I must point out that
all of them are fantastic guys, top
professionals, but patriots as well.
They are all very keen to bring joy to
their nation and play for Serbia’s team
whenever possible, just like me. With
such attitude we certainly helped build
up a strong team and raise the quality
of the Davis Cup, as you suggested.
NIS has sponsored the Serbian
Tennis Association for years and was
with our team when they won the
famous Salad Bowl. How important
is it that large, socially responsible
companies help Serbian sports,
which have not been invested in for
decades?
To my knowledge, NIS has always
invested heavily into Serbian tennis
through sponsoring the Serbian Tennis
Association (STA) and I’m sure that
without your support many things
wouldn’t function well. I’d like to
thank you immensely for that and I
hope other companies will follow your
example and assist in proportion to
their capabilities. Sponsoring sports is a
sound investment in a nation's health,
children and role models which every-
To my knowledge, NIS
has always invested
heavily into Serbian tennis
through sponsoring the
Serbian Tennis Association
(STA) and I’m sure that
without your support
many things wouldn’t
function well. I’d like to
thank you immensely
for that and I hope other
companies will follow your
example
one can benefit from.
What strategy does Serbia need
for investing into sports and youth
development?
In tennis specifically, I would like to
see a national tennis centre and a
system in place which would develop
new talents and players. That is the
basis we need so as to achieve success
in the long run. Unfortunately, we
don’t have the NTC yet but once it
is established, hopefully in the near
future, we will be able to create the
conditions for all young talents to be
able to have a home, a base, a centre
to train in, rest and hang out. I remember when I was 12 or 13, Serbia was
at war and tennis wasn’t too popular,
unfortunately. I had to go to Germany,
to Nikola Pilić's Academy. I remember
how much that sense of belonging and
growing up in a group has helped me
in my career later on. That is what we
need, a collective identity in individual sports. Parents cannot carry the
burden of their children's careers for
long, as has been the case. That is not
a key to success. We need to set up a
viable system.
Tennis is an individual sport.
However, you are known for your
tight-knit team of people accompanying you for years, with whom you
are rather close, just as you are with
your family. How important is team
work for you and how can a strong
team and the support from the family contribute to a tennis player's
success?
I am so lucky to have around me the
people who wish the best for me,
who are sincere and who I care for
so much. They help me stay on the
right track and support me in what I
do. That is so rare these days because
unlike those who focus on investing their energy into their own goals,
my friends are focused on me. That
is why all of my accomplishments
are not only my personal success
but theirs as well, to a large extent.
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It is important to stay focused on the goal
and rise to the challenges encountered on the way.
Is rivalry intense in tennis? Do you
find it easier to communicate with
the junior or senior rivals?
Rivalry is really intense, but we all
respect each other deeply and have a
rather good relationship off court. We
don't let the competitive drive affect our
relationships privately, which is not an
easy thing to do at times. The seniors
among us, so to speak, have been facing
such challenges for years now and we’ve
got used to what life of a professional
tennis player brings, so we try to pass
on some of that experience to younger
generations to make it easier for them.
Personally, I have equally good communication with Federer and Nadal,
with the Bryan brothers, with Dimitrov,
Nishikori and others. Sound and normal
relationships are based as much on
sincerity as on mutual respect.
Do you intend to stay in tennis after
your career of an active player is over?
I see myself as part of the efforts to develop Serbian tennis. I’m not sure what
my official role will be, but I will try to
help young players even more than I do
now. Though I am very busy during the
season, I always find the time to train
with some of our talents, to talk to them
and hear their opinion. I will be able to
seriously devote myself to it after my
professional career.
In 2010 I even considered
leaving tennis altogether. I
kept asking myself if I was
able to outdo Federer and
Nadal; the pressure was
huge, because I had failed
many times playing with
them. I knew, however,
that I had to beat them.
Luckily, I succeeded
You travel a lot. Where do you
like to travel most and what are your
favourite places in Serbia?
Unfortunately, I don't have much free
time over the year, but I like to come
to Serbia whenever I can and enjoy the
beauty of our country. I have nothing
to hide; apart from Belgrade, Kopaonik
is where I feel most comfortable. I have
such fond memories of this mountain,
and the nature is fantastic both in
summer and winter. I try to discover
the beauties of other places as well
and there are plenty of such places
throughout Serbia. Every time I see
and find something new, some new
place, and I’m glad for that.
For top sports players, proper
diet is very important. What do you
eat? Do you have a nutritionist and
what is your favourite food?
I like pasta and eat it almost on a
daily basis, following the gluten diet, of
course. I drink rice milk in the morning;
generally, I eat a lot of rice, white fish
and chicken. That is what I must eat,
but luckily it’s the food I like. My mother
makes the best pancakes in the world
and I often get a craving for them.
What is your message to young
athletes? What is the key to success?
I'm often asked about the recipe and
the secret of success, but frankly there’s
nothing special to say. Young athletes
should keep things simple; avoid
complicating things and falling under
pressure. Also, a lot of pieces need to
come together. The process of growing
up and gaining experience is crucial, as
well as understanding what to do on and
off court, learning about the sport itself
as much as possible, acquiring the skills
and knowledge needed for maximum
improvement. Confidence and self-assurance are equally important, but success
always comes from having a firm character. It is important to be mentally strong
and constantly strive for improvement,
for being the best.
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CULTURE
CULTURE
Festival of Balkan art
Balkan
Trafik
Balkan Art Festival, held for the eighth
time in Brussels is one of the major
European events. Traditionally, each
spring, the Balkan Trafik brings together
people from all over Europe by offering a
wide array of music and movies from our
region. It takes place in the most famous
cultural center of Brussels,
the BOZAR Palace
This year, from 1st to 4th May, the
BOZAR Centre for Fine Arts (Palais des
Beaux-Arts/Paleis voor Schone Kunsten)
in Brussels was a temple of entertainment for more than 7,000 people who
had gathered from all over Europe
and beyond to hear the sounds of the
Balkans, watch movies from these areas
and participate in debates, as well as to
enjoy the authentic tastes of wine, beer
and a variety of food from the Balkans.
This year’s Festival of Southeast European music, film and culture hosted
more than 200 artists from Serbia,
Macedonia, Bosnia and Herzegovina,
Romania, Albania, Bulgaria, and Greece,
including Turkey, Moldova, Ukraine and
more..
The Balkan Trafik is rejoiced by everone
- the generation gaps and contemporary geographical determinants seem to
vanish for a few days blending into the
perfect fusion of the European heritage.
Performers from all over the region are
eager to perform at this famous festival,
whereas Serbian performers such as
Bora Dugic, Goran Bregovic, KAL have
been welcomed as dear guests of the
festival for a number of years now. Folklore ensembles also take place at the
festival, and the sight of them dancing
kolo around the corridors of the BOZAR
Palace together with senior representatives of the European institutions is not
a rarely seen one.
The opening ceremony was in GreekBlues style, spiced up by the concert
featuring Yorgos Dalaras, the legendary
Rembetiko performer. One of the most
visited festival appearances was made
by “Les Femmes des Balkans”, namely
the concert featuring Bilja Krstic, Amira
Medunjanin and Tamara Obrovac, each
performing traditional music from
their own countries, Serbia, Bosnia and
Herzegovina and Croatia respectively,
accompanied by Serbian French jazz
pianist Bojan Zulfikarpasic and his
orchestra. Numerous visitors were
delighted at this fusion of ethno and
jazz music.
Visitors had the opportunity to experience the Queen of Roma music from
Macedonia, Esma Redzepova, performing live with her 17 member-band
Amazing Roma, as well as Johnny Iliev
from Bulgaria, and Romanian band Mahala Rai. This year the festival hosted
Ukrainian and Polish groups making
their first appearances, while the focus
of the festival was on Roma music and
original Balkan jazz.
The 3rd day of the Festival was closed
at dawn featuring the winners of "Guca
2013", the Kristijan Azirovic Brass Band,
in concert.
This was the second year in a row that
NIS has sponsored the event, hosting
the greatest stars of South East Europe.
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CULTURE
CULTURE
Serbian Wine Tasting with NIS
Acoustic Labyrinth
Prior to the performance of “Les Femmes des Balkans”, NIS
hosted a Serbian wine tasting party for the Ambassador of the
Permanent Mission of the Republic of Serbia to the EU, as well
as representatives from the Embassy of Serbia, Belgium and
representatives of the European Parliament and the European
Commission. NIS is the first local company to set up a Representative Office for cooperation with the European Union institutions for the sake of contributing to the rapid inclusion of
Serbia into the European single market and boosting its growth
within the energy sector. Aside from Serbia, the company has
expanded its operations to Bulgaria, Romania and Bosnia and
Herzegovina, from where the most eminent artists came to
perform at this year's Brussels Festival.
The BOZAR Palace was designed by the famous Belgian architect, Victor Horta in such a way that on the outside, Bozar
tends to be quite inconspicuous, but on the inside it resembles a maze of acoustic halls, exhibition rooms and intimate
cocktail reception rooms. Today’s Bozar hosts world’s best
known performers including artists and orchestras from all
over the world; there’s even a Royal Gallery with a VIP seat in
its largest hall, and this is exactly where Barack Obama delivered his speech during his last visit to Brussels back in March.
Rumour has it that throughout the year, the Bozar is shrouded
in a pretty uptight atmosphere ... until the veil gets torn by the
Balkan Trafik.
Contrast Fans should visit the Balkan
Trafik by all means, and witness the
rising of the very core of the heart
of the city, embodied in the BOZAR
Palace, from a seemingly administrative
and uniformed environment. Time is
suddenly not measured in hours and
minutes, but by beats of the melodies
familiar to the Balkan music admirers
The Balkan Trafik Festival is a collage of Southeast European cultures, giving visitors the perfect opportunity to taste
food and drink in an authentically stylized Istanbul Mehana or
a Greek Rembetiko Kafe, while enjoying the music and folklore.
“I came here to listen to the music. I’m not familiar with folk music or with any other Balkan music, I do not listen to it, generally
speaking, but I like the music. A friend who was here earlier told
me to be sure not to miss it. I like the atmosphere, the food, the
people. I would like to come again next year” - says Julien.
a massive electronic party closed the four-day festival, since
all of these make up the Balkans, and the people visiting the
festival must be able to feel the richness and diversity of the
region’s culture.
Brussels itself is a multicultural city, a melting pot welcoming people from different nationalities, primarily owing to the
numerous representatives of EU countries employed at the
headquarters of the European Commission, the Council of
the European Union and the European Parliament, as well as
other European institutions, so it comes as no surprise that
the cultural exchange-oriented Balkan Trafik Festival was
well-received. The audience seemed to be diverse, the most
numerous visitors coming from the Balkan Diaspora, but
there were also locals born in Brussels who came, as well as
many people from other continents.
Her friend, 22-year-old Kroa, also from Quebec is at the Balkan Trafik Fastival for the second time.
The Southeast European culture comes to life in Brussels
owing to the Balkan Trafik which is truly a scrapbook of the
Balkan Peninsula; cherishing traditional and modern cultural
aspirations of the countries that share a common history. The
fusion of the Austro-Hungarian and Ottoman style in music,
film, gourmet specialities, as well as in other aspects of daily
life, the Balkan Trafik prides itself on, keeps delighting its
loyal visitors over and over again.
Twenty-year-old Julien from Montreal came to the Festival on
the recommendation of a friend from Brussels she is staying with.
“I like Balkan music very much. I'm a big fan of Emir Kusturica
films. I’m familiar with the history of Yugoslavia, which I find
quite interesting. I've been to Croatia a few times, and Slovenia,
made some friends there and was introduced to the culture of
your region”
Organizers emphasize that throughout the year they travel
around the Balkan countries in search of the most representative national artists to perform at the BOZAR Center. At
the same time, national does not necessarily mean traditional. BOZAR featured ethno jazz and ethno rock, whereas
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Plovdiv
An Open Air
Museum
Vesna Lapčić
"The City of the Seven Hills"
is extremely important economic and
cultural center of Bulgaria. Having been
conquered in past by many emperors,
today, due to its rich heritage, it’s
conquered by throngs of tourists. The
number of visitors has increased by
seven percent in last year only
The second most important city in Bulgaria, Plovdiv, has a
six-millennium long history. It is the oldest settlements in
Bulgaria and an open air museum of sorts, with a rich heritage
of antiquities and monuments of the ancient past to the present days. It used to lean on seven hills – “tepetas”, and although
there are only six of them today, Bulgarians still call it “the City
of the Seven Hills” and they are an inseparable part of the city’s
history. As the Mayor Milkov Chomakov says, the hills are the
source of confidence for the people of the city, but they also
give them the sense of responsibility and duty. The people of
this town, which has over 365,000 inhabitants, according to
the Mayor, are in love with the spirit of their Plovdiv, which is
embodied in mutual understanding, support and respect.
The number of tourists in this town increased by seven per
cent in the last year compared to the year before, reaching
the number of 14.261, according to the National Statistical
Institute data. The number of individual visits to museums,
which this city is abundant in, increased by five percent in
the same period. Seven-year strategy for the development of
Plovdiv’s tourism from 2014 to 2020 is based on using all that
the city has to offer, cultural heritage, history and nature,
in order to attract even more tourists. The strategy includes
promotions of various public events, wine tours, sports and
convention tourism primarily intended for business guests.
Tourism workers have already prepared two packages which
they will offer to tour operators to include in their offer.
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THE OLD TOWN
Treasury
Archaeological Museum Plovdiv has one of the richest collections of
100,000 exhibits that reflect the history of Plovdiv and the environment and
heritage of the biggest and most famous ancient city in the Balkans. Ethnographic Museum Plovdiv is located in the original house from the Bulgarian
national revival period in Old Plovdiv; it belongs to the protected cultural
heritage of Bulgaria and is one of the most interesting museums in Bulgaria.
Its exhibitions are displayed in a beautiful house, which is a good example of
the Bulgarian Baroque architecture from the period of national awakening
(recovery). It was built in 1847, and the main facade of the house faces the
west - a spacious and nicely landscaped garden.
Plovdiv is now divided into two parts - the Old Town, which is
located on three eastern hills (Dzhambazova Hill, Nebet Hill
and Taksim Hill) and the Lower Town which extends in the
plain below the town. The ancient part is a complete architectural entity that has preserved the atmosphere of the Bulgarian
Revival whereas the modern Plovdiv - which offers fun and
exciting experience – is a tourist and cultural center.
One of the oldest cities in Europe, situated on the banks of the
Maritsa River, Plovdiv was held by Philip of Macedonia, and then
it became a part of the Roman Empire. A number of well-preserved artifacts have remained from that time such as cobbled
streets, old walls, buildings, water and sewage systems. During
the Roman Empire it became an important regional center that
remains to this day recognized by its International Fair and the
International Theater Festival “Scene on the Crossroads”.
The old part of the town houses the remains of a Roman stadium and ruins of a Forum, but there you several mosques and
an original Turkish bath can also be seen. The most remarkable
Philippopolis legacy from the time of Roman administration –
the amphitheater used to be adorned with lavishly decorated
floors, usually with large mozaic compositions. With its amazing size - 240 meters long and 50 meters wide, the Philippopolis
Stadium used to receive 30,000 visitors. This rich Roman legacy
is on the UNESCO's World Heritage List.
The old part of Plovdiv actually has a long history - from the
Thracian fortification built by Macedonian builders, surrounded
by Byzantine walls and beautiful colorful houses, framed by
massive beams, painted in brick red, yellow and beige, built
in the style of Bulgarian national revival, symbolically look on
abandoned mosques and small craft shops of the Lower Town.
Plovdiv is now divided into two parts
- the Old Town, which is located in the
three eastern hills (Dzhambazova, Nebet
and Taksim hills) and the Lower Town
which extends in the plain below the city
The oldest preserved examples of Plovdiv’s houses built in this
architectural style originate from the mid to late 18th century.
The houses are not large, with asymmetric bases and two floors,
vibrant facades which are broken by windows on enclosed balconies, which protrude above the street, with open porches on
the ground floor and verandas with wooden poles that overlook
the courtyard. This first type of Plovdiv’s residential houses is
built of dilapidated timber on solid stone foundations, which
was a feature of the construction period of the Bulgarian revival.
This city is also known for its mosaics, the oldest dating back to the
2nd century, but most mosaics date from the 4th and 5th centuries.
THROUGH HISTORY
The city was returned to Bulgaria during the reign of Khan
Malamir (who reigned from 831 to 836). Over the centuries, the
town was ruled by either Bulgaria and Byzantium. Plovdiv was
briefly even taken by the knights of the Fourth Crusade, and it
finally became a part of the Bulgarian state in 1344.
In 1364 army of the Ottoman Empire attacked and gradually conquered Bulgaria, taking the town in a new direction in terms of its
development. Byzantine architecture was replaced by new buildings
with typical oriental characteristics. The town was renamed to Filibe.
During Bulgaria’s recovery (18th and 19th century), Plovdiv was
a major economic center. It was inhabited by many rich and ed-
ucated people who traveled Europe and
brought new cultural trends. Wealthy
merchants showed their wealth through
the construction of beautiful and richly
decorated houses. Unlike brick houses
built at the beginning of the Bulgarian
recovery, which were small and practical, the art of construction later developed with more imagination, focusing
on size, splendour and detail. In addition
to being a center of architecture, the city
was an important cultural center and
made a significant contribution to the
spiritual awakening of Bulgaria. Plovdiv
was of great importance in the struggle
for independence of the church.
The town was liberated on 16 January
1878 after the war between Russia and
Turkey. The long-awaited St. Stephen
Peace Treaty, signed on 3 March 3 1878,
led to the establishment of the free Bulgarian state. However, several months
later, the Berlin Peace Treaty obscured
the joy of liberalization and splintered
the country into several small parts,
and large border areas were given to
neighboring countries. Bulgaria became
a small, weak principality. Plovdiv remained within the autonomous province
of Eastern Rumelia, which was under the
Ottoman rule, and was chosen to be its
capital. This dramatic period of separation lasted for seven years. During this
period massive construction continued. Many new modern administrative
buildings were built for the new capital.
Meanwhile, a specially appointed committee prepared the coming uprising,
which was supposed to result in the
merger of separate regions of Bulgaria.
The city was captured on 6 September
1885 and Eastern Rumelia was again
annexed to the Principality of Bulgaria.
This date marked the beginning of a new
history of the country and is celebrated
every year as Plovdiv’s memorial day and
an official holiday.
OASIS OF
SPORTS AND
RECREATION
In addition to its cultural attractions,
the city offers very good conditions for
sports and recreation. At one end of the
town there is an Olympic-sized rowing
base, which offers excellent conditions
for rowing, running and cycling. As we
have mentioned, in the past Plovdiv had
seven hills six of which still stand today.
Marko’s Hill was turned into a pavement for the cobblestone streets. Those
who choose to count the hills of Plovdiv
should remember that the elevation
of the Old (Ancient) Plovdiv consists of
three hills.
Dzendem Hill, also known as the Hill of
Youth, is the highest and was declared
a protected area because of its endemic
plants and preserved nature. A variety of
animal species may be found there, such
as squirrels, rabbits and jackdaws. Monument in honor of the Soviet Army was
built on the Bunardžik Hill (Alyosha). Sahat Hill (sahat – clock, tur.), with a clock
tower, has become a park, a favorite
place for couples and young people with
guitars. The clock tower, which dates
from the 16th century, stands on top of a
hill. All the hills of Plovdiv are well maintained parks with paths and benches.
The city is one of the most popular tourist destinations in the country and the
cultural and economic center of southern Bulgaria. In the city there are many
options for accommodation, from luxury
hotels to hostels. The town’s main street
offers excellent opportunities for shopping and entertainment, and abounds in
restaurants.
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