The Serbian government has formed teams to negotiate with Russia on a long-term gas supply contract and on the issue of the Oil Industry of Serbia (NIS), announced Minister of Mining and Energy Dubravka Đedović Handanović.
Additionally, a Coordination Body has been set up to oversee the work of these two teams, with Prime Minister Miloš Vučević at the helm, Đedović Handanović stated to Tanjug after the government session.
She added that ministers would also be part of the teams and that the government would strive to ensure that the effects of the anticipated U.S. sanctions on NIS do not negatively impact Serbia’s economy.
“We will also aim to secure a new long-term gas supply contract with Russia under the best possible conditions,” the minister said.
No need for citizens to worry
She emphasized that citizens should not be concerned, as the authorities would find the best possible solutions to ensure that citizens are not harmed.
“The news we are receiving regarding the sanctions on NIS is not good, but in the coming days and weeks, we will work to preserve energy stability and security, which in turn will protect our economy and industry. We will do everything we can to prevent these effects from spilling over into operations, as energy sources like oil have an impact on both industrial activities and citizens. Our goal is to find the best solutions to avoid negative impacts,” she said.
She explained that it is still too early to say what the solutions will be. Multiple scenarios are being worked on, and they must wait for the final document to be drafted to understand whether the sanctions are related to the entire ownership structure, the majority stake, or the controlling share.
“The most important thing is that we are talking with both sides, especially with the Russian Federation, which is our partner in the energy sector. We are supplied with gas primarily thanks to Russia and our good relations with the country. We must preserve that, and it is an absolute priority. We will conduct these talks with that focus, under the leadership of President Vučić, who has announced talks with President Putin, which is very important,” she noted.
She also mentioned that in 2025, Serbia will renew its long-term gas agreement with Russia. This winter, Serbia secured additional gas supplies, primarily from Russia and some from Azerbaijan. According to Đedović Handanović, this increases the country’s energy security, but decisions concerning oil will impact both the refinery and petrochemical industries, potentially affecting other sectors closely tied to them.
Citizens should not worry
However, she reassured the citizens that they need not worry, as the government would work out the best possible solution to ensure their safety.
Đedović Handanović assessed that difficult weeks lie ahead for Serbia, but she expressed confidence that with wise foreign policy, led by President Aleksandar Vučić, Serbia will find good solutions and adequately protect the energy security, stability, and interests of its citizens.
Increased reserves of gas and oil
Serbia’s policy has always prioritized the protection of its citizens. That’s why Serbia did not impose sanctions on the Russian Federation, remaining principled in its approach. She also pointed out that Europe has placed itself in a challenging situation regarding energy since the conflict in Ukraine began, and Serbia must be cautious in the energy sector.
She noted that Serbia is connected to the European market, which means the country must be vigilant with regard to electricity and protect its reserves.
“We have significantly increased our reserves of both oil and gas in recent years, as well as our coal reserves, which are crucial for electricity production,” she said. “I believe that, thanks to our prudent policies and good relations with partners from both East and West, Serbia will maintain its position.”
She also pointed out that NIS had already faced challenges in obtaining spare parts, particularly from Western countries such as the EU and the U.S., and with financing projects from Western banks. Despite these obstacles, NIS has successfully navigated them.
“NIS is a very important company for our economy and for the Serbian state budget. Let me briefly address the opposition’s comments, offering advice on what the Serbian government should or should not do. I believe the citizens haven’t forgotten who sold NIS, when, and at what price,” she emphasized.
Prime Minister Miloš Vučević has scheduled a government session for today at 10 a.m. to discuss the issues raised by President Aleksandar Vučić in his previous address to the government, including energy matters and the resolution of the challenges facing NIS, which is set to face U.S. sanctions.
