30 May 2022 16:33

Gas talks between Vucic and Putin were successful, Serbia's energy minister says

ROME. May 30 (Interfax) - Telephone talks between Serbian President Aleksandar Vucic and Russian President Vladimir Putin on Sunday went well, Serbian Mining and Energy Minister Zorana Mihajlovic said.

Gas supplies to Serbia were among the topics discussed.

"It's great that we have this [gas] agreement. It means we'll have a comfortable winter, and our economy will continue to develop, which would not have been possible without stability in the gas sector, because our industry relies heavily on gas," Mihajlovic said on Serbian television.

"The price and the three-year term are also good. We'll get 2.2 billion cubic meters of gas for around $400 [per thousand cubic meters]," she said.

She said "talks will follow with Gazprom additional volumes of gas, but in any event the price will be lower."

"Some neighboring countries are already having problems [with gas supply]. But Serbia has good opportunities, thanks to the good relations between our two presidents," she said.

Serbia also intends to diversify gas supplies. "Diversifying gas supplies is a natural way to stabilize the energy system for decades to come. Serbia is working to secure gas supplies from various sources," Mihajlovic said.

Serbian President Aleksandar Vucic said following a telephone conversation with Russian President Vladimir Putin that Belgrade and Moscow had reached agreement on a new three-year gas agreement. Serbian TV channel RTS reported that later Vucic said that the gas price for Serbia, according to his information, would be in the range of $310 to $408 per thousand cubic meters. Based on the fact that Serbia needs 2.2 billion cubic meters of gas per year, this is the best gas price in Europe, he said.

The question of an additional 800 million cubic meters of gas, since consumption in Serbia has grown, remains open, he said. Vucic said he had reached out to Gazprom CEO Alexei Miller to discuss the amount of gas his country needs soon.

If everything that was agreed with Putin is implemented, then Serbia will have a comfortable winter in terms of gas supply, and after negotiations with Gazprom it will be possible to say exactly how much a cubic meter of gas will cost the country on average, Vucic said. Right now Serbia's price is three times lower, and in winter it will be 10-12 times lower than what the rest of Europe pays, he said.

The long-term contract to supply Russian gas to Serbia expires on May 31.