Russian President Vladimir Putin has proposed that Serbia initiate discussions for a new gas delivery contract ahead of the current agreement’s expiration in March 2025. The existing contract, signed during the 2022 energy crisis, secures Russia’s supply of 2.2 billion cubic meters of gas per year to Serbia at a preferential price ranging from $300 to $420 per 1,000 cubic meters.
This agreement has been instrumental in protecting Serbia from the volatile market prices seen in 2022 and 2023, which soared following the onset of the Ukraine war. Thanks to this deal, Serbia enjoyed some of the lowest gas prices in Europe, according to Bloomberg Adria. Putin conveyed this message to Serbian Deputy Prime Minister Aleksandar Vulin during their meeting in Vladivostok, Russia. He also expressed his anticipation for Serbian President Aleksandar Vučić’s participation in the upcoming BRICS summit this fall.
“Please extend my regards to President Vučić. We are eagerly awaiting his attendance at the BRICS leaders’ meeting. An invitation has been sent, and we hope he will accept,” Putin remarked at the start of the meeting with Vulin.
During their discussions at the Eastern Economic Forum, Putin also noted a slight drop in trade between Russia and Serbia and emphasized the need to investigate the causes of this decline.
He proposed that it is time for the Intergovernmental Committee for Trade-Economic and Scientific-Technical Cooperation between Serbia and Russia to convene. “The committee has not met for at least two years. Any obstacles need to be addressed and resolved, as there are many promising areas for collaboration, including industry, transportation, and other industrial sectors,” Putin said.
Putin highlighted Russia’s crucial role in Serbia’s energy supply and affirmed that deliveries are timely and under favorable conditions. “We will discuss these matters, keeping in mind that our gas supply contracts are set to expire in March 2025,” he added.
In April, Russia fell off the list of Serbia’s top foreign trade partners, and data from May, June, and July showed that it had not regained its previous standing. Historically, Russia was among the top five importers for Serbia, largely due to gas and oil imports. However, the import of Russian oil was banned on December 5, 2022, due to European sanctions.
In 2022, trade between Serbia and Russia reached a record $4.2 billion, driven by increased imports of gas and oil. The drop in trade in 2023 was mainly due to the oil import ban.
