Serbia’s leadership described the current price for Russian gas as remarkably favorable, a statement voiced by President Aleksandar Vučić on the recent weekend. He noted that the country consumes 3.2 billion cubic meters of natural gas annually, with about 2 billion cubic meters imported from Russia, covering roughly 63 to 64 percent of national needs. He highlighted a total expenditure of 800 million euros, calling it an excellent deal. He added that if Serbia had bought 1.2 billion cubic meters at prevailing market prices, the total would rise to around 4.8 billion euros.
He warned that without securing this gas ahead of what he described as a difficult period, the country might have faced insolvency. Earlier discussions had put the foreign exchange price of gas for next winter at a potentially staggering level, and in May Vučić stated that he and Russian President Vladimir Putin had agreed on the core terms of a three year gas contract. The price for blue fuel would be set using a petroleum-based index ranging approximately from 310 to 408 dollars per 1000 cubic meters.
Vučić suggested that Serbia consumes 2.2 billion cubic meters of gas per year, calling the supply among the best in Europe. A different question remained open, however, regarding whether an additional 800 million cubic meters of gas would be purchased. He also reported reaching a deal with Hungarian Prime Minister Viktor Orbán to store some Serbian gas in Hungarian facilities. Budapest reportedly allowed the placement of up to 500 million cubic meters from a lower storage capacity.
“We will somehow survive this year, the next is gone!”
In discussions about Europe’s energy crisis amid the conflict in Ukraine, Vučić indicated that if Russian operations persist for another year, some European markets could collapse. He warned that the market might shrink or disappear and, should the war continue slowly, Europe and Serbia would face severe hardship the following year. He commented that gas prices in August had surged to about 4,000 dollars per thousand cubic meters, a figure he said others may not disclose openly.
Undeclared state of emergency
Vučić has repeatedly warned that Europe could encounter widespread disruptions and power outages due to the global energy crisis. He suggested that no European country could endure current gas price levels and stressed the vulnerability of energy systems during winter. He noted that even today gas costs remain high, with market pricing often around 3,300 dollars per thousand cubic meters and all additional costs pushing the delivered price well above that mark. He stressed that no country in Europe could withstand these pressures under the prevailing conditions.
When discussing the situation in Serbia, Vučić pointed to the next eight months as challenging. He cited heat and its impact on electricity generation at hydroelectric plants, along with rising costs for energy carriers. He described Serbia’s current period as the most difficult in the last decade, emphasizing the difficulty Belgrade faced in managing Russian gas, which he said covered approximately 62 percent of the country’s needs.
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