Serbia will continue negotiations this week with Russia’s Gazprom on a new long-term gas agreement, the general director of Srbijagas, Dusan Batajtovic, said on May 18 during a guest appearance on TV Prva.

The talks, aimed at securing a new long-term supply arrangement, come as the current gas contract between Serbia and Russia is due to expire on May 31.

"The deadline of the contract is now being negotiated," said Bajatovic during an interview with TV Prva on May 18. "I hope that the final agreement will be reached by May 31."

Discussions began earlier this month when Serbian President Aleksandar Vucic visited Moscow for the May 9 Victory Day parade, marking the 80th anniversary of the Soviet Union’s victory in World War II. During the visit, Vucic held high-level talks with Russian President Vladimir Putin, including preliminary negotiations on gas pricing.

"The first part (of the negotiations) was general, we understood who wanted what... We won't have a problem with quantities for sure; the only issue is the term of the contract, which will not be less than three years," Bajatovic said.

"We will have a capacity of 2.5bn cubic metres of gas per year, we reached a good price, but I am not sure now how much it will amount to according to the oil formula. We did not reach an agreement because we strive to reach an agreement that will be valid for ten years."

Serbia, an EU candidate country, has increased efforts to diversify its energy sources – securing alternative supplies, including from Azerbaijan – but still remains heavily dependent on Russian gas. The country currently pays $275 per 1,000 cubic metres, a figure significantly below European market rates.

The long-term nature of the proposed deal raises concerns about Serbia's energy security and relations with Brussels. The EU has announced plans to phase out Russian gas imports by 2027 in response to Russia’s war in Ukraine. A long-term agreement with Moscow could expose Serbia to legal and political risks, including potential EU and US sanctions.

Serbia's sole oil company NIS, majority-owned by Gazprom and its subsidiary Gazprom Neft, already faces the threat of secondary sanctions from Washington. Maintaining a direct bilateral gas deal with Russia could deepen those vulnerabilities.

Bajatovic has acknowledged these risks but remains cautiously optimistic. “There is one very important question. Europe wants to ban Russian gas in 2027, but maybe there will be an agreement between the Russians and the Americans,” he told RTS on May 13, suggesting that geopolitical shifts could alter Serbia’s energy options.

Bajatovic said Serbia intends to preserve the interstate nature of the contract, bypassing intermediaries, but declined to disclose the final agreed price. A formal agreement is expected to be signed by the end of May.