Serbia agrees further three-month Russian gas import extension: minister

Serbia has agreed to a further three-month extension to its gas supply contract with Russia's Gazprom, Serbia's energy minister Dubravka Dedovic Handanovic said late June 4, following talks in St Petersburg with Gazprom CEO Alexei Miller.

Dedovic Handanovic said the extension would allow continued, stable, "affordable" Russian gas deliveries to Serbia, state broadcaster RTS reported.

"This is important for our country, for our citizens, and for our economy, also because of the flexibility and the quantities they carry," she said.

Serbia's three-year gas import deal with Gazprom was initially set to expire at the end of May last year, but has already been extended four times, with the latest extension due to expire on June 30. A further three-month extension would keep the contract in effect until Sept. 30.

In a ministry statement June 4, Dedovic Handanovic said Gazprom was a "key and reliable" partner in gas supply. Russian gas deliveries had contributed "significantly" to Serbia's energy security in the years marked by supply disruptions in Europe and rising prices, she added.

"Our goal in the coming period will also be to ensure security and predictability for our citizens and economy through partnership with Russia and Gazprom in times of uncertainty," she said.

Storage expansion

Serbia's energy ministry also noted that Dedovic Handanovic and Miller discussed the expansion of the Banatski Dvor gas storage facility in Serbia.

"The conversation noted good progress in the expansion of Banatski Dvor," the ministry said.

The capacity of the site -- in which Gazprom holds a 49% stake alongside Serbia's Srbijagas (51%) -- is being expanded from 450 million cubic meters to 750 million cubic meters of gas.

Work to expand the site's capacity began in April 2025.

"By increasing storage capacities, together with the construction of new gas interconnections to our neighbors, we are laying the foundation for building Serbia's long-term energy security, in which our partnership with Russia will continue to play an important role," Dedovic Handanovic said.

In its own statement June 4, Gazprom confirmed Miller had held a working meeting in St Petersburg with Dedovic Handanovic.

"The meeting was held at the initiative of the Serbian side. The parties discussed the status and prospects of cooperation in the energy sector," it said.

Short-term deals

Serbia had been seeking additional volumes and supply flexibility in a new long-term deal with Gazprom, with talks taking place through 2025 and into 2026.

Despite Belgrade requesting a new long-term deal, Gazprom has offered only short-term extensions.

The existing agreement provides for the delivery of 2.2 Bcm/year -- equivalent to about 6 million cu m/d -- at 100% oil-indexed prices.

Spot gas prices in Europe remain high. Platts, part of S&P Global Energy, assessed the benchmark Dutch TTF month-ahead price on June 4 at Eur48.81/MWh.

Separately, on June 5, Gazprom said it had also agreed to extend the contract for Russian gas supplies to the Republic of Srpska, one of the two confederal entities of Bosnia and Herzegovina.