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Serbia prepares to start talks on new Russian gas contract

Director of Srbijagas Dusan Bajatovic announced that negotiations with Gazprom on a new long-term gas arrangement for deliveries of Russian gas to Serbia will begin in the next few days, and they should be completed by May 15 at the latest.

Back in November 2021, Serbia agreed to continue buying Russian gas at a price of $270 per 1,000 cubic metres for six months after its long-term contract expired, despite the hike in gas prices on international markets recently. The deal was struck between the presidents of the two countries. 

According to Bajatovic, under the new contract, Russia will deliver 3bn cubic metres of gas per year at a price of $600 to $850 per thousand cubic metres. Currently, Serbia receives 6mn cubic metres per day from Gazprom at the lower rate of $270.

Belgrade resists sanctions pressure 

Serbia has so far resisted calls from EU leaders to join western sanctions on Russia, though it has condemned the invasion of Ukraine. 

President Aleksandar Vucic has long pursued a multi-vector foreign policy, pursuing EU accession while maintaining friendly relations with Russia, China and the US. However, as an EU accession candidate, Serbia has been under heavy pressure to join international sanctions imposed on Russia after its unprovoked invasion of Ukraine. This proved to be insufficient, though, for Serbia to turn its back on its old ally. 

Explaining the decision, Vucic said on February 25 that Belgrade will be “guided solely by the protection of its citizens' vital economic and political interests”. 

Interior Minister Aleksandar Vulin stressed Serbia’s determination not to impose sanctions on Russia at a meeting with the Russian ambassador in Belgrade, Aleksandar Bocan-Kharchenko on March 22. 

"Serbia, led by Aleksandar Vucic, is an independent and sovereign country that chooses its friends on its own,” Vulin said, according to an interior ministry statement.

Moving away from Russian gas 

Serbia’s talks with Russia are due to start at a time when other governments in the region are looking at ways to move away from dependence on Russian gas imports. However, while calls for an embargo on Russian oil and gas have gained traction in the EU, Germany is resisting the measure.

Bulgarian Prime Minister Kiril Petkov said on March 21 that Bulgaria expects to complete its gas link with Greece by the end of June, aiming to end its energy dependence on Russia. The completion of the Greece-Bulgaria interconnector has been delayed for years by Sofia but Petkov's government is now keen to complete it as soon as possible.

Bajatovic commented on the announcement by Bulgaria that it plans to end imports of Russian gas. In a video published by Tanjug, Bajatovic said that he did not believe that Bulgaria would stop importing Russian gas. Russian gas comes to Serbia through Turkey, which did not impose sanctions on Russia, and then through Bulgaria. He added that he did not see “any interest from Bulgaria, Hungary or Serbia in order for someone to cut off the supply of Russian gas”.

“We also buy gas from Hungary, which comes from Ukraine. We are now buying gas from Ukraine. Therefore, I do not expect something like that to happen, because it is not in the interest of Russia or Europe,” he concluded.