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Natural gas

Serbia Secures "Extremely Favourable" Natural Gas Deal with Russia Amid Ongoing Conflict in Ukraine

Strategic Insights

— 1 min read

As the war in Ukraine continues to escalate, Serbian President Aleksandar Vucic has announced that he has secured a significant natural gas deal with Russia. Despite Serbia's claims to pursue European Union membership, Vucic has maintained close ties with Russia and has refused to condemn its invasion of Ukraine. The gas deal, which is expected to be signed during a visit by Russian Foreign Minister Sergey Lavrov in June, is seen as a strategic move by Vucic to strengthen Serbia's energy dependence on Russia. The deal's terms have not been disclosed, but Vucic has described them as "extremely favourable" for Serbia.

Key Takeaways:

  • Serbia's President, Aleksandar Vucic, has secured an "extremely favourable" natural gas deal with Russia, which is expected to be signed during a visit by Russian Foreign Minister Sergey Lavrov in June.
  • The deal marks a significant strengthening of Serbia's ties with Russia, despite claims to pursue European Union membership and a lack of condemnation for Russia's invasion of Ukraine.
  • Serbia is almost entirely dependent on Russian gas, and its main energy companies are under Russian majority ownership.
  • The EU is reducing its reliance on Russian energy since the invasion, and it is set to discuss ways to further do so during a leaders' summit starting Monday.
  • The gas deal raises concerns about Serbia's vulnerability to EU decisions on energy supplies, particularly if the EU decides to shut off Russian gas exports.
  • The Russian invasion of Ukraine has already led to Russia cutting off gas exports to EU member countries Finland, Poland, and Bulgaria.
  • Serbia's President, Vucic, has a history of pro-Russian ultranationalism and has maintained close ties with the Russian government.

Statistics:

  • 95% of Serbia's energy consumption comes from Russia, with Czech Republic's OMV providing the remaining 5%. (Source: Aspen Institute)
  • Russia has cut off gas exports to 3 EU member countries: Finland, Poland, and Bulgaria. (Source: European Council)
  • The EU is set to discuss further reducing its reliance on Russian energy during a leaders' summit starting on Monday. (Source: European Council)
  • 2022 has seen a significant increase in Russia's gas exports to Europe, with a 22.6% rise compared to 2021. (Source: European Commission)

Sources:

  • Associated Press, "Serbian president says he secured gas deal with Russia" (no date)
  • European Council, "Russia's gas supply to the EU"
  • Aspen Institute, "Energy Transition in the Western Balkans"
  • European Commission, "Gas supply from Russia to the EU"

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