Railways works protocol with Russia

Belgrade, June, 08. 2010 (Serbia Today) - Serbia and Russia have signed a protocol for conditions of a Russian loan for reconstructing parts of the Serbian railway system, learns b92. The Russian loan is expected to be used for two major reconstructions—the railway from Valjevo to Loznica in the west of the country, and the Belgrade railway hub. But according to Serbian Railways Director Milovan Markovic, the realization of the loan will not come as soon as previously announced. All other plans will have to be put on hold until another arrangement, while the financial conditions of the Russian loan are expected to be made public in about two months. The deal will not only include the money, but also export business for Russian companies, according to sources. Talks about the financial part of the deal, deadlines for payments and interest rates, have not begun yet.  The Belgrade railway hub is expected to need EUR 210mn, while the railroad from Valjevo to Loznica will need EUR 260mn worth of investments in order to be completed, according to estimates.