Talks on sale of Serbian steel mill in final phase

BELGRADE - The talks between the Serbian government and U.S. company Esmark Inc. have reached the final phase, the government has announced.

The talks between Belgrade and Pittsburg, where Serbian Minister of Economy Dusan Vujovic is staying on a working visit, were held through a conference call on Thursday evening , and they will continue on Friday, while the decision is expected on Saturday, Serbian Prime Minister Aleksandar Vucic said.

The government entered into negotiations with Esmark on January 27, as the U.S. company was the sole bidder for 80.01 percent of shares of Zalezara Smederevo, following a tender that was invited on January 9.

For the first time since the start of the talks with Esmark, the prime minister said on Thursday that the steel mill will keep on working, even if the two sides fail to reach the agreement.

Asked about the stumbling blocks in the negotiations with Esmark, the prime minister said that Serbia is seeking guarantees from the U.S. company that it will not leave Serbia after it uses the country's supplies of raw materials.

Meanwhile, contradictory pieces of information on the possible outcome of the talks with Esmark have appeared.

Tanjug has learned at the Ministry of Economy that the talks have practically been finalized with a favorable outcome.

According to conflicting claims, the greatest hindrances in the talks are related to raw materials and guarantees for a stable, years-long production, given that the share of raw materials in total costs stands around 60 percent.

The source told Tanjug that there has been no convergence of positions between the government and Esmark, adding that apparently Esmark does have logistics for supply of raw material at...