Serbia expects extension of Russian gas supply deal

Serbia expects its gas supply arrangement with Russia to be extended beyond September 30, former President Aleksandar Vucic said after a phone call with Russian President Vladimir Putin on September 26.

Vucic, a day before he resigned as president, said he was confident the arrangement would be extended and that Serbia would continue to pay well below the market price (about €318 per 1,000 cubic metres, compared with €868).

"The gas arrangement expires on September 30. I believe that, following today's conversation, it will be extended and that we will secure stable gas supplies," Vucic said in a video posted on Instagram.

Serbia has relied on short-term extensions since its previous three-year gas supply agreement with Russia expired in 2025. It remains heavily dependent on Russian gas, despite efforts to diversify supplies through imports from Azerbaijan and domestic production.

The call was among Vucic's final diplomatic contacts as president. He resigned on September 27, eight months before his second term was due to expire, to run for prime minister in a snap parliamentary election scheduled for October 25.

Vucic also said he discussed Serbia's sanctioned oil company NIS with Putin, adding that the issue was more complicated and that the two sides hoped to find a solution.

NIS applied to the US Treasury on September 24 for a new licence allowing it to continue operating after its current waiver expires on September 30.

Russia's Gazprom Neft holds 44.85% of NIS and Gazprom a further 11.3%, while the Serbian government owns 29.9%. Hungarian oil and gas group MOL is negotiating to acquire the Russian stake. MOL signed a binding agreement with Gazprom Neft in January to acquire its 56.15% stake, subject to regulatory approvals.

The Serbian government also signed an agreement with MOL in June on the future governance of NIS if the Hungarian company becomes its majority owner.

The gas and NIS deadlines come as Serbia seeks to maintain close energy ties with Moscow while pursuing membership of the European Union.

Belgrade has not joined Western sanctions against Russia over its war in Ukraine, although it has supported United Nations resolutions defending Ukraine's territorial integrity.

Vucic said his call with Putin also covered bilateral relations, the war in Ukraine and the situation in the Balkans.