Serbia Hopes for Gas Deal Extension After Vucic-Putin Call
Despite its EU membership aspirations, Serbia remains one of the few European countries to maintain close ties with the Kremlin since Russia’s invasion of Ukraine. Serbia also imports gas from Azerbaijan and has some domestic production, but not enough to offset the loss of Russian supplies.
President Aleksandar Vucic is optimistic that Serbia can secure another extension of its gas deal with Russia following a call with President Vladimir Putin, as Serbia continues to rely heavily on Russian gas supplies. The current agreement expires on September 30, and Vucic expressed hope that the recent conversation would lead to a longer-term arrangement.
Serbia's gas consumption stands at a favorable price of €318 ($362) for every 1,000 cubic meters, rather than the current market price of €868. Amidst Serbia's aspirations to join the EU, the country remains one of the few European nations maintaining close ties with Russia since Russia's invasion of Ukraine. The nation also imports gas from Azerbaijan and has limited domestic production.
However, Serbian oil company Petroleum Industry of Serbia (NIS) is facing US sanctions due to its majority Russian ownership. The sanctions, which are set to expire on September 30, coincide with the deadline for a sale of Russia's 56% stake in NIS to Hungary's MOL. The US sanctions waiver also expires on the same date, prompting the need for a Russian exit.
During the call, Vucic discussed the issue of the Petroleum Industry of Serbia in the hope of finding a solution beneficial to both sides. This marks among Vucic's final diplomatic contacts as president as he announced his resignation on September 27 to run for prime minister in snap elections called following student-led anti-graft protests.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
