In a bid to secure its energy future, Serbia is looking to maintain its current favorable terms for Russian gas supplies. President Aleksandar Vucic expressed his gratitude to Moscow for the reliable gas supplies and emphasized the importance of the matter, stating that Serbia has a long-term contract with very favorable terms. Vucic’s comments came during his meeting with Russian President Vladimir Putin in Moscow, where they discussed a new deal as the current one is set to expire at the end of May.
Serbia’s reliance on Russian energy supplies is significant, with the country meeting around 85% of its total energy needs through Russian supplies. The landlocked Balkan state has been affected by Western sanctions against Russia over the Ukraine conflict, but has managed to secure supplies of both oil and gas from Russia. Vucic’s visit to Moscow was seen as a significant gesture, especially given the recent health scare that forced him to cut short a trip to the US and cancel a planned meeting with President Donald Trump in Florida.
The current contract between Serbia and Russia, which runs until May 31, sees Belgrade pay just $275 per 1,000 cubic meters of gas – far less than the European market rate, which has been fluctuating around $400 after surging to an annual high of $665 in early February. Putin emphasized that Russian energy giant Gazprom is supplying volumes beyond its contractual obligations at Serbia’s request, and that energy cooperation is a driving force of the trade and investment relations between Moscow and Belgrade.
Despite facing significant pressure from Brussels, Vucic’s visit to Russia, along with Slovak Prime Minister Robert Fico, highlights the strong ties between the two nations. The Serbian president’s efforts to maintain the current terms for future Russian gas supplies are crucial for the country’s energy security, and it remains to be seen how the negotiations will play out. One thing is certain, however – the relationship between Serbia and Russia will continue to play a significant role in shaping the energy landscape of the region.
