Serbia secures four-month extension to cut-rate Russian gas deal

Serbia and Russia have agreed to extend a deal providing Belgrade with cut-price Russian natural gas, Serbia's network operator said Monday, despite EU concerns about the close ties between the two countries.

Moscow supplies Serbia with the bulk of its gas, and Belgrade has been paying just $275 per 1,000 cubic metres under the current contract with Moscow that was due to expire at the end of May, but has now been extended until the end of September.

The price is far lower than the current market rate in Europe.

The deal came after talks between President Aleksandar Vucic and Russian leader Vladimir Putin in Moscow earlier this month.

The extension of the deal until September 30, signed Friday, will let Serbia increase its stockpiles "before the winter season", the head of the state-owned network operator Srbijagas, Dusan Bajatovic, told RTS television.

"We have assured ourselves six million cubic metres daily," he added, "at a price around 290 euros [per 1,000 cubic metres], at a time when the market price is around 360 euros."

"Which means that we are well prepared" for winter demand, he said.

Further talks with Russia are scheduled for Sept. 18-21 in Saint Petersburg during an economic forum, Bajatovic said.

Serbia, which is not a member of the EU but is seeking to join, has maintained close ties with Russia throughout Moscow's Ukraine offensive and has not joined the bloc in imposing sanctions on Russia.