Serbia and Russia are working together to find a solution that ensures the unhindered supply of gas to Serbia following the recent US sanctions imposed on Gazprombank, according to Dušan Bajatović, CEO of the state-owned Serbian gas company, Srbijagas, in an interview with RIA Novosti. On November 21, the United States sanctioned Gazprombank and six of its foreign subsidiaries, targeting Russian gas exports.
Bajatović criticized the sanctions, stating that they were part of an attempt by the outgoing US administration to punish European nations that buy Russian gas. He pointed out that some of the largest buyers of Russian liquefied natural gas (LNG), including France, Spain, Belgium, Hungary, Slovakia and Serbia, are affected by these sanctions. However, he emphasized that Gazprombank is merely a mechanism used to enforce these sanctions, not the target itself.
The Serbian CEO noted that sanctions have increasingly become part of personal disputes within the outgoing US administration, which he believes will foster more suspicion and disappointment among the global business community. Bajatović assured that Serbia is working closely with Russian officials to find a way to ensure a steady gas supply to the country. While solutions are being explored, he stressed the need for extensive coordination among all parties involved. He expressed hope that the new US administration would adopt a more constructive approach toward resolving European energy supply issues and reconsider the financial sanctions that impact the purchase of essential energy resources.
Serbian President Aleksandar Vučić highlighted in mid-November that Serbia currently pays about 60-63% of the market price for Russian gas, with heating costs reaching record levels—approximately 14 million cubic meters per day. At present, Serbia pays $323 per 1,000 cubic meters of gas, while the market price is around $520 per 1,000 cubic meters. Russia’s Gazprom continues to be the primary supplier of gas to Serbia, and a new agreement has been made for the winter heating season, ensuring a supply of 6+2+3 million cubic meters of gas per day, based on a favorable pricing formula linked to oil prices.
Looking ahead, Serbia plans to extend its multi-year gas supply agreement with Russia in the spring of 2025. The gas is delivered to Serbia via the Turkish Stream pipeline, which passes through Bulgaria, and future volumes are expected to reach 4 billion cubic meters per year.
