Serbian President agrees to 3-year gas supply contract with Putin

Serbian President Aleksandar Vucic said on Sunday he had agreed a new three-year gas supply contract in a phone call with Russian President Vladimir Putin.

“I can not speak about the price now, all details will be agreed with Gazprom,” Vucic told reporters. Vucic said that Serbia had agreed with Putin that the price of gas would be linked to the oil price, but did not elaborate.

Serbia’s 10-year gas supply contract with Gazprom expires on May 31.

Vucic also said that he had discussed with Putin expansion of gas storage space in the Balkan country.

“Putin said to call him if I feel there is anything more to be discussed,” said Vucic, Putin’s closest ally in Europe.

In 2008 the Balkan country put its gas and oil sectors in the hands of Russian companies. Gazprom Neft and Gazprom together hold a majority stake in the country’s sole oil company while Gazprom is the majority shareholder in the country’s sole gas storage facility.