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Putin pledges three-year gas supply to Balkan ally Serbia

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MOSCOW - Russian President Vladimir Putin promised Serbian President Aleksandar Vucic an uninterrupted natural gas supply, the Kremlin said in a statement following a telephone conversation between t

he pair on Sunday .Serbia, which hasn't joined international sanctions against Russia, is extending its contract with the gas giant, maintaining a balancing act of seeking European Union membership while also keeping close ties with the Kremlin.

Mr Vucic said the cost of a cubic meter of gas will be determined during additional negotiations with Gazprom, adding that he expects favourable rates.Gazprom's price for the Balkan country will remain based on an oil formula, resulting in up to 10 times lower gas rates for Serbia compared to most other buyers in Europe, Mr Vucic said.Entirely dependent on Russia for gas, Serbia has sought to diversify its energy sources.

 

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