Serbia Strikes Long-Term Gas Deal with Russia

Serbia has guaranteed gas supply from Russia until 2021 due to the signing of an intergovernmental agreement between the two countries in Belgrade.

The agreement, which was signed between Serbian energy minister Zorana Mihajlović Milanović and Russian energy minister Alexander Novak, will see Russia supply Serbia with up to 5 billion cubic metres of  gas a year. The gas will be supplied from Russian major Gazprom.

The agreement will cover gas supply for a period of nine years, from 2012 to 2021.

Through the deal, Serbia will also be obliged to pay moneys owed for previous gas supply from Russia, at a cost of $30 million for gas supplied between November 2000 and January 2001. An additional $10 million will be paid for gas already supplied at various times between 1995 and 2000.

The terms of the agreement require that this debt of $40 million be paid by the end of 2014 with the amount to be paid off in installments before that time.