Serbia's Energy Minister Dubravka Djedovic Handanovic met with Gazprom CEO Alexei Miller in Saint Petersburg and confirmed: gas supplies continue until the end of September. For Belgrade, this is not a negotiation victory — it is another temporary patch instead of a systemic solution.
What was actually signed
The new annex is not a full contract, but a short extension of the current long-term agreement, which was supposed to end on May 31. According to The Moscow Times, back in May Gazprom agreed to extend supplies for four months — until the end of September — with a daily volume of 6.1 million cubic meters. The price is fixed at 290 euros per 1,000 cubic meters: below the European average (~360 euros), but higher than the 275 dollars under the previous three-year contract.
In parallel, discussions were held on expanding the Banatski Dvor underground gas storage — from 450 to 750 million cubic meters. This is an infrastructure gesture toward longer-term binding, but without public timelines or commitments.
Why there is still no long-term contract
Negotiations on a new multi-year contract have been ongoing since early 2025 — and so far without results. According to CEE Energy News, since May Serbia has been trying to conclude a long-term agreement, but keeps receiving only three-month annexes. The situation is complicated by at least three factors.
- U.S. sanctions against NIS. American sanctions that took full effect in October 2025 are hitting Naftna Industrija Srbije — the oil company where Gazprom controls 56% of shares. Serbia is negotiating the sale of this stake to escape sanctions pressure.
- EU pressure. According to Balkan Insight, the European Commission is promoting a ban on Russian gas imports under REPowerEU — this makes any long-term contract with Gazprom potentially incompatible with Belgrade's pro-European integration course.
- Moscow's leverage. According to Serbian President Aleksandar Vucic, Russia deliberately offers only short extensions — to prevent Serbian nationalization of NIS and maintain its leverage over Belgrade.
Dependence without alternatives
"We pay 270 euros per 1,000 cubic meters, while the exchange price this morning was 350."
Dusan Bajatovic, CEO of Srbijagas, March 2025
Serbia covers only 10% of gas consumption with its own production. Imports from Azerbaijan in the short term cannot replace Russian volumes — Bajatovic openly acknowledges this in comments to state broadcaster RTS. This means Belgrade's negotiating position is weak not due to diplomatic mistakes, but because of structural dependence.
The scheme "three-month annex → new negotiations → three-month annex" has been repeating for the second consecutive time in 2025 — and each time without a public control mechanism or clear conditions for transitioning to a long-term contract.
If by the end of September Serbia again fails to sign a full agreement, the question will cease to be diplomatic: is Belgrade ready to make real concessions regarding NIS — or will it simply receive a fourth temporary annex in a row and postpone the choice for another quarter?
