Serbia secures three-month extension of Russian gas deal

Serbia has secured a three-month extension of its gas supply agreement with Russia on favourable terms, President Aleksandar Vucic said on March 30 after a call with Russian President Vladimir Putin.

The extension prolongs a series of short-term arrangements between Belgrade and Moscow since a 10-year contract expired in May 2025. The previous three-month deal, agreed in December, had been due to run out at the end of March.

“We got another three-month extension of the gas contract, under very favourable conditions,” Vucic said in remarks quoted by Tanjug. “We will be the second or third country in Europe with the lowest gas price, most likely the second after Belarus.”

Efforts to secure a longer-term agreement have stalled, with Moscow declining to offer a multi-year contract in October 2025 despite months of negotiations.

Vucic said the new extension maintains flexible supply terms of about 6mn cubic metres per day, with the option to increase volumes during periods of higher demand. Pricing will continue to be determined under an oil-linked formula, significantly below prevailing European market rates.

He said benchmark prices on the Dutch TTF hub were around $645 per 1,000 cubic metres, implying a cost of roughly $690, while Serbia pays between $320 and $330 under the current arrangement.

Serbia consumes about 3bn cubic metres of gas annually, nearly all imported. Russia accounted for roughly that volume in 2024, although its share fell to about 75% in 2025 from over 90% a year earlier, as Belgrade increased purchases from Azerbaijan.

Russian gas reaches Serbia via pipelines through Turkey and Bulgaria, as well as through Hungary.

Uncertainty over future supplies is growing as the European Union plans to phase out Russian gas imports, alongside transit constraints. Bulgaria has signalled it intends to halt Russian gas transit by 2028.

Serbia is likely to remain reliant on short-term supply deals amid EU pressure, market volatility and risks to transit routes.