Kostunica arrived in Banja Luka just two days ahead of parliamentary elections in his country to underline the importance of special ties between Serbia and the Bosnian Serb entity.
He told the press that today's contract was a strategic project signed in line with the Agreement on Special Parallel Relations between Serbia and Republika Srpska.
The entity government decided in December to sell Telekom Srpske to Telekom Srbije, which had offered EUR646 million in a public bid. The only other bidder was Telekom Austria, offering a little over EUR400 million for a 65 per cent interest in the company. Telecommunications experts maintain that Serbia's offer was financially unjustified.
Dodik described the sale as a historic event, saying that his government was capable of properly managing the money it would receive from Serbia. He said the sale was a good venture for both the entity and Serbia.