Russia gives Serbia chance to save one billion euros on natural gas

Serbian President Aleksandar Vucic said that Serbia would save about a billion euros owing to the favorable gas price that Russia set for the country as a result of the negotiations that took place on November 25.

Speaking about his meeting with Russian President Putin, Aleksandar Vucic noted that he had reached an agreement with his Russian counterpart on the oil formula that did not always look as attractive as it did today. According to the agreement, Serbia will be able to pay about $270-275 per thousand cubic meters of natural gas against the backdrop of current oil prices of $82-83 per barrel.

Serbia will continue to enjoy the lowest gas price in Europe, excluding the CIS countries, Vucic said. Serbian citizens will thus save up to one billion euros at least, including all foreign exchange transactions. Vucic also said that the issue was of strategic importance for the country.

"Do you even understand that prices range from 650 to 1,200 euros per 1,000 cubic meters, and we pay 270?" Alexandar Vucic said.

In addition, the Serbian president expressed his endless gratitude to Putin for respecting the interests of Belgrade and for providing the country with such an advantageous price for the next six months. Putin could not set the same price for a longer period, because that would displease other customers. For example, Germany is now fighting for an opportunity to buy gas at $500, the President of Serbia explained.

Vucic also said that competitors make every effort to push Russia out from the natural gas market, including with the Nord Stream 2 gas pipeline. Europe currently lacks 70 billion cubic meters of gas, while the Nord Stream 2 will ensure the supplies of 55 billion. However, European countries are unwilling to launch the pipeline due to pressure from the United States, Vucic said.

"The Russians have a problem they don't want to talk about. Namely, the West tries to push Russia out politically, even though there is no gas in Europe," Alexandar Vucic said.