Serbia Will Not Run Out of Gas – New Gas Contract with Russia Expected by September 20

He stated that negotiations with the Russian side are ongoing, but emphasized that the deal will be concluded by the September deadline. The delay, he said, is related to Serbia’s obligations toward the European Union, which must be considered.

“The issue isn’t with the content of the contract itself, but with the legal and financial risks involved, from possible sanctions to transit and delivery costs,” Bajatović told RTS. “The contract will be signed by September 20, but we still need to determine how to open the market while maintaining control.”

He added that the Government of Serbia adopted a preventive gas supply plan this month, as part of a standard annual measure.

“This type of document outlines what the country has, what it produces, what needs to be imported, and the available reserves. If there’s no gas, power plants must rely on fuel oil,” Bajatović explained.

Srbijagas plays a key role in implementing this plan, and Bajatović announced that the company is planning to build a new national gas storage facility in Tilva, near Belgrade.

“We’re projecting an investment of between €350 million and €500 million. The facility must be commercial, capable of both injection and withdrawal. This, along with the existing Banatski Dvor storage, would truly ensure gas security for Serbia,” he said.

At the European level, new storage rules are being prepared, aiming for 90% occupancy between October 1 and December 1. According to Bajatović, current EU storage occupancy stands at 55.7%.

“It sounds good when they say, there will be affordable prices, but they’re not filling the storage, they’re only softening peak consumption. These are more populist measures,” he said.

Bajatović warned that the liberalization of the gas market, as requested by Brussels, could mean that Srbijagas will no longer be the guaranteed supplier.

“If we end up with a speculative market, there could be shortages, price hikes, and uncertainty for consumers,” he warned.

While a direct ban on Russian gas would not immediately apply to Serbia, Bajatović stressed that the EU’s pressure to open the market poses a risk. If Srbijagas is no longer the main supplier but just one of many market players, Serbia could face uncontracted supplies and speculative pricing.

Currently, Europe imports 91 billion cubic meters of gas from Norway, 56 from Russia, and 45 from the USA. Bajatović noted that the American supply has reached its peak and cannot increase further.

“If a ban on Russian gas is introduced, shortages and price spikes are inevitable. That’s the core issue,” Bajatović emphasized.

Finally, he addressed the issue of potential U.S. sanctions on NIS, Serbia’s main oil and gas company.

“The sanctions will likely be postponed for another two to three months. If internal issues within NIS are resolved, we can request delisting, the removal of sanctions. But without NIS, we cannot maintain the market supply. If NIS operations are halted, supply will drop and prices will rise,” Bajatović concluded.