Serbian Minister of Mining and Energy Zorana Mihajlovic said that Serbia will have to negotiate more natural gas deliveries but not a current market prices.
Minister Mihajlovic said that Serbia is now in a better position than many countries in the region, adding that it is important to have multiple suppliers, regardless of whether that is Russia or someone else. Serbia negotiated a deal for 2.2 billion cubic meters of gas and it consumes about 3 billion, so it needs to secure supplies for the rest. She added that Serbia has to maintain good relations with the European Union and develop renewable energy sources.
According to Minister Mihajlovic, the gas interconnection with Bulgaria was not completed because Serbia relied on Russia gas, adding that the interconnection will be finished in 2023. She expressed hope that Serbia would soon expand its gas storage capacities, thus increasing its energy security.
On 29 May, Serbian President Aleksandar Vucic announced that he has agreed new three-year natural gas supply agreement with Russia in his conversation with Russian President Vladimir Putin. The price of supplied gas is based on the oil formula, which means that in winter, when oil prices are the highest, the price of Russian natural gas supplied to Serbia will be between 310 and 410 dollars per 1,000 cubic meters. The price is valid for 2.2 billion cubic meters of gas per year.
