Serbia negotiates with Russia to extend gas supply contract

Serbia is negotiating with Russia to extend its gas supply contract, which expires in March, with the aim of maintaining current volumes with Gazprom, Bloomberg reported.

Serbia is in a good position to negotiate a gas deal with Russia thanks to its close ties with Moscow, Serbian Deputy Prime Minister Aleksandar Vulin told Bloomberg at a forum in the United Arab Emirates.

Serbia has avoided coordinating with the West’s sanctions against Russia since the Kremlin’s invasion of Ukraine.

The country, which consumes around 3 billion cubic meters of gas a year, relies on the Russian company Gazprom for around two thirds of its supply.

Serbia is also diversifying its gas sources by buying gas from Azerbaijan and opening a new route to a liquefied natural gas terminal in Greece.

Vulin said Serbia was aware of the recent changes in Russia’s gas payment process introduced by dictator Vladimir Putin.

“We will do everything we agree with Russia,” he said.

Putin’s new decree allows foreign companies to pay for Russian gas through intermediaries and removes the obligation to pay only through Gazprombank, which has been under US sanctions since November.

Under the new rules, payments can be made in roubles or to offset mutual debts./The Geopost/