Serbia is currently negotiating with Russia to extend its gas supply contract, which is set to expire in March. The country aims to maintain its current supply levels with Gazprom, according to a Bloomberg report.
Serbia is in a strong position to negotiate a new gas agreement with Russia due to its close ties with Moscow, as stated by Serbian Deputy Prime Minister Aleksandar Vulin at a forum in the United Arab Emirates.
Since Russia’s invasion of Ukraine, Serbia has avoided aligning with Western sanctions against Russia. The country, which consumes about 3 billion cubic meters of gas annually, relies on Gazprom for around two-thirds of its gas supply.
In addition to its negotiations with Russia, Serbia is diversifying its gas sources by purchasing gas from Azerbaijan and opening a new route to a liquefied natural gas (LNG) terminal in Greece.
Vulin confirmed that Serbia is aware of recent changes in Russia’s gas payment process, as introduced by President Vladimir Putin. “We will do everything we agreed upon with Russia,” Vulin said.
Putin’s new decree allows foreign companies to pay for Russian gas through intermediaries and removes the requirement to pay exclusively via Gazprombank, which has been under U.S. sanctions since November.
According to the new regulations, payments can be made in rubles or by offsetting mutual debts.