Serbia's leaders clash over deals with Russia and attitude to EU

SERBIA:MAJOR DEALS between Serbia and the European Union and Russia are becoming hostage to a battle between Serb president Boris Tadic and prime minister Vojislav Kostunica, three weeks before their parties clash in a crucial general election.

Relations between liberal Mr Tadic and nationalist Mr Kostunica have collapsed over the president's insistence that Belgrade continue to push for membership of the EU, even though most of its members support Kosovo's independence and the bloc is deploying a mission to oversee the running of the fledgling state.

Mr Kostunica's allies, along with the ultra-nationalist Radical Party, say Belgrade should not sign any deal with any organisation that accepts Kosovo's sovereignty, dealing a blow to Mr Tadic's hopes of clinching a premembership pact with Brussels before the May 11th election.

Mr Kostunica and the nationalist bloc advocate closer ties with Russia, Belgrade's main supporter over Kosovo, and have agreed to sell Serbia's state oil firm to Kremlin-controlled Gazprom to help strengthen that alliance.

Mr Tadic's party is refusing to allow ratification of that agreement, amid concerns that it dramatically undervalues the NIS oil company and is effectively a "thank you" gift to Moscow for its opposition to Kosovo's secession.

The conflict over the deals has highlighted the rift between Serbia's president and premier, and that which divides its electorate almost down the middle, before a ballot that is likely to decide whether the country moves towards EU membership or becomes a pro-Russian enclave in the mostly western-leaning Balkans.

After meeting Russian officials in Belgrade late last week, Mr Kostunica said the deal for NIS, and for Gazprom to route a major pipeline through Serbia, should be ratified by parliament "as soon as possible".

Mr Tadic's Democratic Party says the deal should be assessed by the new government after the May 11th vote, however, and is urging the EU to give its election chances a boost by offering Belgrade a pre-accession pact before the ballot. Some EU members want all Serb war crimes suspects captured before any such offer is made.

"That signature would bind Serbia to nothing," Mr Kostunica warned yesterday, a week before EU foreign ministers are expected to discuss the issue.

"It is obviously not in the national interest of Serbia to sign an agreement that would tomorrow be interpreted as Serbia's signing off on an independent Kosovo."