BELGRADE -- Serbian President Aleksandar Vucic says his country has reached an “extremely favorable” deal with Russia for supplies of natural gas following a telephone conversation with Russian President Vladimir Putin.
Vucic said on May 29 that the three-year agreement will provide Serbia with natural gas at the “most favorable price in Europe.”
“We will sign a three-year contract, and tomorrow or the day after tomorrow we will discuss the quantities of gas,” Vucic said.
“Serbia needs larger quantities of gas, but if I may say so, we will have a safe winter, and further talks will determine how much gas will cost us," he said, adding that the exact price would be determined based on supply and demand.
The price of gas that Serbia will receive from Russian energy giant Gazprom is three times lower than what other European nations pay. In winter that price would be 10 to 12 times lower, officials said.
Gazprom, directly or through its subsidiaries, is the majority owner of substantial energy assets in Serbia.
The Kremlin said in a statement that Putin told Vucic that an "acceptable solution" would be found for the price of Russian gas for Serbia.
While most of Europe has imposed sanctions on Moscow for its unprovoked invasion of Ukraine, Belgrade has rejected such moves to punish its traditional ally, and Vucic has declined to join the widespread global condemnation of Russia’s actions.
Serbia depends on Russia almost entirely for its energy supplies. Vucic has said that imposing sanctions against Moscow would be disastrous for Serbia.
Vucic has attempted to straddle a fine line between his hopes of moving the country into the European Union while remaining on solid footing with the Kremlin.
In his May 29 talks with Putin, the Serbian president said he discussed the situation in Ukraine and reiterated Belgrade’s position that it is interested in peace as soon as possible.