Serbia has secured a three-month extension of its gas supply agreement with Russia under what President Aleksandar Vučić described as “very favourable terms,” following talks with Russian President Vladimir Putin.
Vučić said the agreement would ensure continued deliveries at prices significantly below prevailing European market levels, offering short-term relief to the Balkan country as energy costs remain volatile.
“I thanked President Putin because we received a three-month extension under very favourable conditions,” Vučić told reporters, adding that Serbia would continue to receive around six million cubic metres of gas per day under flexible terms.
He said the price would remain linked to an oil-indexed formula, allowing Serbia to pay roughly $320–330 per 1,000 cubic metres, compared with about $645 on Europe’s benchmark TTF gas price benchmark, where spot-linked purchases would cost closer to $690.
The extension comes as Europe faces ongoing uncertainty over energy supplies amid geopolitical tensions and elevated oil prices, which Vučić said could further strain economies across the continent.
“If this continues and there is an escalation, Europe will face the biggest energy crisis in its history,” he said, warning that rising oil prices—currently around $115 per barrel—could push fuel costs higher domestically.
Diversification efforts and Azerbaijan supplies
Vučić said Serbia was also working to diversify its gas sources, including increasing imports from Azerbaijan, which now supply around two million cubic metres per day under existing agreements.
He added that further increases would depend on available capacity in regional pipeline systems such as Trans Adriatic Pipeline (TAP) and Trans Anatolian Natural Gas Pipeline (TANAP), as well as the development of new interconnectors, including a planned link with North Macedonia.
Serbia is also considering a joint project near the southern city of Niš to build a gas-fired power plant aimed at boosting electricity generation capacity amid rising demand from data centres, artificial intelligence infrastructure and electric vehicles.
Kremlin confirms call, pledges reliability
The Kremlin confirmed the phone call, with spokesman Dmitry Peskov saying Russia remains committed to fulfilling energy supply obligations to what it described as “friendly and partner countries,” including Serbia.
“We are particularly committed to our obligations towards friendly and brotherly countries such as Serbia,” Peskov told reporters, adding that Russia aims to remain a reliable global energy supplier, including to Europe.
While the extension secures near-term supply stability, analysts say Serbia remains exposed to broader regional energy risks and will need to accelerate diversification to reduce reliance on Russian gas.
Belgrade has maintained close energy ties with Moscow despite European efforts to reduce dependence on Russian supplies following the Ukraine conflict, positioning itself as one of the few countries in Europe still benefiting from discounted long-term contracts.
The latest deal provides temporary certainty ahead of further negotiations expected later this year on longer-term supply arrangements.