Serbia’s Vucic says he has agreed a three-year gas supply contract with Putin

Serbian President and presidential candidate Aleksandar Vucic speaks after the results of the presidential election in Belgrade, Serbia, April 3, 2022. REUTERS/Antonio Pronic

BELGRADE (Reuters) – Serbian President Aleksandar Vucic said on Sunday he had approved a new three-year gas supply contract in a phone call with Russian President Vladimir Putin.

“I can’t talk about the price now, all the details will be agreed with Gazprom,” Vucic told reporters. Vucic said Serbia had agreed with Putin that the price of gas would be linked to the price of oil, but he did not go into further details.

The 10-year contract for the supply of Serbian gas with Gazprom (GZAVI.MM) expires on May 31.

Vucic also said he and Putin discussed expanding gas storage in the Balkan country.

“Putin asked to call him if you felt there was anything else to discuss,” said Vucic, Putin’s closest ally in Europe.

Serbia, which aims to join the European Union, has recently come under pressure from Western countries to align its foreign policy with the bloc and impose sanctions on Russia.

In 2008, the Balkan state placed the gas and oil sectors in the hands of Russian companies. Gazprom Neft (SIBN.MM) and Gazprom together hold a majority stake in the country’s only oil company, while Gazprom is the largest shareholder in the country’s only gas storage facility.

(Reporting by Ivana Sekiularak) Editing by Emilia Sithole Mataris

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