Dusan Bajatovic (BETAPHOTO/Dragan Gojic)
Dusan Bajatovic, the director general of state natural gas provider Srbijagas, on May 13 said that an agreement had been in principle achieved with Russia, under which Serbia would be purchasing 2.5 instead of two billion of cubic meters of gas annually.
He told state public broadcaster RTS that details were now being discussed, adding that a contract should be valid for ten years.
After an official meeting of the Serbian and Russian presidents, Aleksandar Vucic and Vladimir Putin respectively, in Moscow, teams of Srbijagas and Russian energy corporation Gazprom had continued talks on details of a new gas arrangement, Bajatovic said. “The current agreement expires in May. Now, risks to both sides are also being discussed. The quantity of natural gas is not a problem, but rather flexibility, because Serbia has started consuming 18 million cubic meters daily during cold periods. We will see the cost of it,” Bajatovic said.
He also said that Serbia would like to sign a ten-year arrangement, adding he believed it would be possible.
“They agree, but there is a very important issue. Europe wants to ban Russian gas as of 2027, but there could potentially be an agreement between the Russians and the Americans. The question is, if sign a ten-year contract, what would be considered ‘force majeure’ for us and the Russian side. So, it needs to be ensured that they will not face penalties because they will not be able to deliver to us, and that we do not face penalties because we will not be able to accept deliveries,” Bajatovic specified.
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