Serbia Extends Russian Gas Supply Deal for Three Months

Serbian Gas Supply Company (Srbijagas) director Dušan Bajatović told the Serbian parliament that the gas supply contract with Russia has been extended for the next three months and is expected to be prolonged until the end of the year. He indicated that without the gas supply, planned infrastructure projects such as interconnections with Romania, North Macedonia and increased capacity toward Hungary could stall, leading to a minimum 40% rise in gas prices, or up to 80% if imports shift to the German coast.

Bajatović stressed that Srbijagas finances its investment loans independently but requires a state guarantee to complete the projects. He warned that failure to finish the interconnections and storage facilities would jeopardise energy security and raise costs for consumers. Opposition lawmakers criticized the need for state guarantees and warned about high interest rates and the transfer of financial risk to citizens.

The extension secures a daily supply of six million cubic metres of gas at a discounted rate, while discussions continue on further extending the agreement to the end of 2024.