Interim Agreement Reached
Serbia has agreed to extend its gas supply arrangement with Russia for an additional three months, with deliveries secured until March 31, 2026. The announcement was made by Serbian President Aleksandar Vučić on December 23, 2025. This short-term extension aims to guarantee sufficient electricity and gas for the country during the winter season, as discussions for a more comprehensive, long-term contract are ongoing.
President Vučić stated, 'We have agreed to extend gas supplies for another three months... so people can feel safe and sleep peacefully.' He also noted that if a long-term deal is not finalized by the end of the year, Serbia would begin exploring alternative gas sources.
Dependence and Previous Extensions
Serbia remains significantly dependent on Russian energy. According to Serbia's gas company, Russia currently supplies approximately 6 million cubic meters per day at a rate of roughly 290 euros ($342) per 1,000 cubic meters, which is below the European market price of around 360 euros ($424).
The previous three-year agreement between Serbia and Russia's Gazprom expired earlier this year. Since then, Serbia has relied on a series of short-term extensions. The contract, which was signed in 2022 for up to 2.2 billion cubic meters (bcm) of gas per year, was initially extended to the end of September, then to the end of October, and subsequently to December 31, 2025, before this latest three-month agreement.
Challenges and Diversification Efforts
Energy cooperation with Belgrade is complicated by the situation surrounding Russian investments in the national energy company NIS (Naftna Industrija Srbije). NIS, which is majority-owned by Russia's Gazprom Neft, was included in the U.S. SDN List in early 2025, leading to U.S. demands for Serbia to completely divest Russian capital from the company. This has resulted in the shutdown of the NIS refinery in Pančevo due to a lack of crude oil supplies.
President Vučić confirmed that Gazprom representatives are in discussions to sell their stake in NIS, with Hungarian national company MOL being among the potential buyers. Serbia has set a mid-January deadline for this sale. Despite these challenges, Serbia is intensifying efforts to diversify its energy sources, including importing gas from Azerbaijan via an interconnector with Bulgaria and planning a gas link with North Macedonia.
Outlook for Long-Term Stability
While the short-term extension provides immediate relief, the uncertainty surrounding a long-term gas deal with Russia persists. Belgrade had hoped to secure a new long-term contract as early as May 2025. The ongoing negotiations are taking place against a backdrop of geopolitical pressures and Serbia's strategic balancing act between its aspirations for EU membership and its close ties with Moscow.
5 Comments
Michelangelo
Pragmatic decision in tough geopolitical times. No one wants to freeze.
Raphael
Serbia puts its citizens first, energy security guaranteed!
Michelangelo
The lower gas price is a clear benefit for Serbia's economy, but the deep ties with Russia, especially given the NIS sanctions, present significant long-term risks to its EU aspirations and national sovereignty. It's a tricky balance.
Donatello
The NIS situation clearly shows the true cost of these deep Russian ties.
Michelangelo
It's understandable that Serbia needs to ensure energy supply, particularly during winter, yet these repeated extensions show a lack of decisive progress towards energy independence. The diversification efforts need to be significantly accelerated.