Putin promised Serbia gas supplies at a price half that of the market rate
Serbian President Aleksandar Vučić has agreed with Russian dictator Putin to extend the gas contract for another three months on terms favorable to Belgrade.
This was reported in a post by the Serbian president on Instagram.
Under the agreement, Serbia will purchase gas based on an oil-linked formula, allowing it to pay approximately $320–$330 per thousand cubic meters. Currently, the market price on the European TTF hub is approximately $645, and taking into account additional costs, the country would have had to pay around $690 for the same volume.
The agreement was reached during a phone call amid the energy crisis caused by the war in the Middle East. In addition to the low cost, the contract provides for flexible supplies, allowing Serbia to receive over six million cubic meters of gas per day if necessary. Vucic emphasized that ensuring reliable energy supply conditions is extremely important for the country’s energy security amid complex geopolitical challenges in the global market. Thus, Serbia has secured a stable supply of energy resources at a price that is nearly half of current quotations on international exchanges.
Prior to this, Serbian President Aleksandar Vučić had announced his intention to change the country’s energy strategy to reduce dependence on Russian gas.
In December, Vučić announced the continuation of Russian gas supplies, which will allow the country to maintain the stability of its energy resources during the winter.
