Serbia to extend Russian gas deal through October

Serbia expects to extend its current natural gas supply arrangement with Russia by the end of March, securing deliveries until October under a short-term annex agreement, the head of state gas company Srbijagas said.

Srbijagas CEO Dusan Bajatovic told state broadcaster RTS on March 20 that a new deal is likely to be agreed on March 26 or 27, ahead of the expiry of the existing contract on March 31. The extension would run from April 1 to October 1.

“The details of the contract will probably be known on March 26 or 27,” Bajatovic said, adding that the arrangement would cover around 2.5bn cubic metres, or roughly 6mn cubic metres per day.

Serbia has relied on a series of short-term extensions since its 10-year gas supply contract with Russia expired in May 2025. In December, the two sides agreed to prolong the deal by three months to the end of March.

Efforts to secure a long-term agreement have stalled, with Moscow declining to offer a multi-year contract in October 2025 despite months of negotiations. Serbian officials had expected a longer deal following meetings between President Aleksandar Vucic and Russian President Vladimir Putin last year.

Bajatovic said several factors, including European Union policies, prevent the signing of a longer-term contract. “Europe does not allow that, as you know. We are annexing the old contract,” he said.

Serbia consumes about 3bn cubic metres of gas annually, nearly all of it imported. Russia supplied roughly that volume in 2024, though its share dropped to about 75% in 2025 from over 90% a year earlier. The remainder is sourced mainly from Azerbaijan as Belgrade seeks to diversify supply routes.

Russian gas reaches Serbia via pipelines through Turkey and Bulgaria, as well as through Hungary. However, the EU’s plan to phase out Russian gas imports from January 2026, alongside transit restrictions, has added uncertainty to long-term supply planning.

Bajatovic said Serbia currently has around 650mn cubic metres of gas in storage, sufficient for about six months of summer consumption or three months in winter.

He added that talks are ongoing with Azerbaijan to secure additional volumes and that discussions are also underway regarding the construction of a new power plant.

Energy Minister Dubravka Dedovic Handanovic said talks with Russian officials on March 20 were productive and expressed expectations that the gas arrangement would be finalised soon.

“We must be aware that we have the best conditions for the delivery of gas from Russia,” she said in comments reported by Tanjug news agency.

Serbia is likely to remain dependent on short-term deals due to EU pressure, market volatility and risks related to gas transit through Bulgaria, which plans to halt Russian gas transit by 2028.

Serbia currently pays about €270 per 1,000 cubic metres of Russian gas, well below European spot prices.