Serbia to Extend Gas Import Contract with Russia for Three Years

New Gas Agreement Set for October

Serbia is poised to formalize a new three-year contract for natural gas imports from Russia in October 2025. This announcement comes from Dusan Bajatovic, the director general of the state-owned gas company Srbijagas, who confirmed that negotiations are concluding this week. The new agreement will extend the existing terms, ensuring continued gas supply under the same conditions.

The current gas supply deal, which was previously extended, is set to expire at the end of September 2025. The forthcoming contract is expected to secure an annual supply of 2.5 billion cubic meters (bcm) of natural gas for Serbia.

Supply Details and Storage Capacity

According to Bajatovic, Serbia currently receives 9.5 million cubic meters (mcm) of gas daily from Russia. Additionally, the country has arranged daily supplies of 2.5 mcm from Azerbaijan. These supplies are crucial for meeting Serbia's energy demands, particularly as winter approaches.

Serbia's gas storage infrastructure plays a vital role in its energy security:

• The primary gas storage facility, Banatski Dvor, holds 780 mcm of natural gas.
• An additional 200 mcm can be sourced from a storage facility in neighboring Hungary if needed.
• Serbian storage facilities are currently filled to over 90 percent of their capacity, indicating preparedness for the upcoming heating season.

The gas from Russia is primarily transported via the TurkStream pipeline.

Political Context and Economic Implications

Serbia remains one of the few European nations that continues to import Russian gas, despite its aspirations to join the European Union. This stance has led to pressure from Western countries for Serbia to align with EU sanctions imposed on Russia following the invasion of Ukraine.

Bajatovic emphasized that the new contract will maintain the existing favorable conditions, including a pricing formula linked to crude oil. He stated that the price for Serbia is 'very good' and 'the best price in Europe,' though specific details are not publicly disclosed due to a new contractual clause. Furthermore, Bajatovic assured that there would be no increase in gas prices for households, with Srbijagas committed to covering any potential differences for distributors or consumers.

The country's oil monopoly, NIS, which is majority-owned by Russia's Gazprom Neft and Gazprom, is currently seeking a seventh waiver to delay US sanctions. Serbian President Aleksandar Vučić is expected to meet with US Secretary of State Marco Rubio to discuss these tariffs and sanctions, highlighting the complex geopolitical landscape surrounding Serbia's energy policy.