Serbia has extended its natural gas supply agreement with Russia’s Gazprom until the end of September, just days before the existing contract was set to expire, Dusan Bajatovic, director general of state-owned gas importer Srbijagas, said on May 26.

The current contract, which was due to lapse on May 31, will now continue under existing terms until September 30. The temporary extension comes as Belgrade and Moscow negotiate a new long-term energy deal.

An annex to the existing arrangement was signed on May 23, Bajatovic told Serbian public broadcaster RTS. The agreement secures the delivery of 6.1mn cubic metres of gas per day at a price of €290 per 1,000 cubic metres.

“The extension allows the country to fill its storage facility in Banatski Dvor, as well as those made available to it by Hungary,” Bajatovic said.

He noted that household gas prices will remain unchanged in the coming months, while gas for industrial users is expected to become even cheaper – provided there are no significant disruptions in the market.

“The annex extended the same conditions,” Bajatovic added, emphasising that the price continues to be calculated using a formula linked to oil prices. He contrasted the contracted rate with current prices on the Dutch TTF exchange, where gas is trading at around €360 per 1,000 cubic metres.

The short-term extension follows a visit by Serbian President Aleksandar Vucic to Moscow earlier this month for the May 9 Victory Day parade, commemorating the 80th anniversary of the Soviet Union’s victory in World War II. During the visit, Vucic held talks with Russian President Vladimir Putin that included preliminary negotiations on future gas pricing and supply volumes.

Despite its status as a candidate for European Union membership and recent efforts to diversify energy imports – including agreements for deliveries from Azerbaijan – Serbia remains heavily reliant on Russian gas. The country currently pays significantly below prevailing European market rates, at approximately $275 per 1,000 cubic metres under the existing terms.