Srbijagas has overtaken Elektroprivreda Srbije (EPS) as the largest beneficiary of state-guaranteed borrowing, signalling a shift in the balance of financial exposure within Serbia’s energy sector as gas infrastructure and supply take on greater strategic weight.
Data from the Public Debt Administration show that Srbijagas ended 2025 with €548m in government-backed loans, slightly ahead of EPS at €543.6m, marking the first time in recent years that the gas utility has moved to the top of the guaranteed debt ranking.
The change reflects diverging balance-sheet trajectories rather than a single large transaction. EPS has reduced its exposure from close to €700m in 2024, as part of a broader effort to stabilise finances following the energy crisis, while Srbijagas has increased borrowing, particularly in the latter part of the year.
Over a longer period, Srbijagas’s debt had remained relatively stable at around €495m in both 2023 and 2024, before rising in 2025. The increase points to a renewed investment cycle in the gas sector, driven by infrastructure expansion and supply security considerations.
The company’s financing needs are closely tied to its role in developing and maintaining Serbia’s gas network. Investment in pipelines, interconnections and storage capacity has required sustained access to credit, much of it backed by sovereign guarantees. At the same time, Srbijagas carries a substantial repayment burden, reflecting the cumulative effect of earlier borrowing linked to network development and supply arrangements.
EPS, by contrast, is moving into a different phase. While still central to the energy system, the electricity utility has shifted its focus toward operational stabilisation and targeted capital expenditure, including environmental upgrades and renewable projects. That transition has reduced its reliance on state-backed borrowing, even as its investment programme continues.
At the level of public finances, overall exposure to guaranteed loans has declined. Total state guarantees stood at around €1.74bn at the end of 2025, the lowest level in several years. Yet the structure of that exposure remains concentrated, with Srbijagas and EPS accounting for the majority of outstanding liabilities.
This concentration underscores the continued role of state-owned utilities as primary vehicles for capital investment in the energy sector. It also highlights the persistence of contingent liabilities on the government balance sheet, given that guaranteed debt ultimately carries fiscal risk.
The reordering of liabilities has implications beyond accounting. It points to a broader shift in the centre of gravity within Serbia’s energy system. Electricity, historically the main focus of state-backed financing, is entering a period of relative consolidation, while gas is moving into a more capital-intensive phase.
That shift is taking place against a backdrop of heightened attention to energy security and regional integration. Expanding gas infrastructure, strengthening interconnections and ensuring supply reliability have become central priorities, particularly in the wake of recent volatility in European energy markets.
International institutions have increasingly focused on these dynamics. While EPS had previously been at the centre of reform efforts, attention has begun to move toward Srbijagas, reflecting both the scale of its borrowing and its importance within the national energy framework.
Despite the reduction in total guarantees, risks remain concentrated. A large share of the debt is owed to external creditors, exposing the system to changes in financing conditions and exchange-rate movements. The reliance on sovereign guarantees also means that financial pressures within state-owned companies can translate into fiscal obligations.
The shift from EPS to Srbijagas at the top of the guaranteed debt ranking therefore represents less a resolution of underlying issues than a redistribution of exposure. As investment priorities evolve, so too does the profile of state-backed borrowing, with the gas sector now assuming a more prominent role in Serbia’s energy financing structure.
