European country has a new gas contract with Russia

Serbian President Aleksandar Vucic announced on May 29 that he had agreed to a new three-year gas contract with Russia in a phone call with his Russian counterpart. Vladimir Putin.

In addition to the gas contract, the two presidents of Russia and Serbia also discussed the prospect of expanding gas storage facilities in Serbia, Vucic revealed.

The president of Serbia explained that the price of gas will be tied to the price of oil, but did not give more specific information. He also noted that the gas price issue will be resolved with Russian gas giant Gazprom.

“I can’t talk about the price right now, all the details will be agreed with Gazprom,” Vucic told reporters.

However, later in the day, the president of Serbia gave an estimate of the cost of gas. “Gas prices will be 100% according to the oil formula, that is, from 310 to 408 USD per thousand cubic meters of gas. That’s the price for 2.2 billion cubic meters of gas, which is the best price in Europe,” said Serbian President Vucic.

Moscow confirmed that gas supplies to Belgrade were discussed during the talks between President Putin and President Vucic, but did not provide any specific details.

“The two leaders had in-depth discussions on the bilateral agenda, including steps to expand mutually beneficial economic and trade cooperation, and reached agreement, especially on Russia’s continued continuous supply of gas to Serbia,” said a press release from the Kremlin about the call.

Belgrade’s current 10-year gas supply contract with Gazprom expires on May 31.

Serbia has enjoyed strong political and economic ties with Russia over the years, however the relationship between the two nations was put to the test when Russia launched a military campaign from Ukraine. Under pressure from the EU, Belgrade refused to join the Russia sanctions and maintained relations with Moscow.

This position was reiterated by President Vucic at the World Economic Forum in Davos early last week. The Serbian president confirmed that Belgrade will first of all continue to pursue “its own interests”.

“Who knows what threats we might face, but as you can see, 90 days have passed and Serbia still maintain its policy, the only country in the whole of Europe. A small country with a small population but very proud is following its own policy – not pro-Russian, not pro-Western, but itself,” he stressed.