Russian President Vladimir Putin has agreed to extend the gas supply contract with Serbia amid the global energy crisis caused by the conflict in the Middle East - Serbian President Aleksandar Vucic announced after a phone call with President Vladimir Putin on March 30.
This move takes place in the context of the global energy market falling into a state of high tension as conflict between the US - Israel and Iran seriously disrupts oil and gas supplies through the Strait of Hormuz.
According to Mr. Vucic, the extension agreement was finalized right before the old contract expired on March 31, helping Serbia continue to receive gas from Russia with "very favorable" terms, especially a significantly lower price than many European countries.
The Kremlin confirmed that the exchange between the two sides focused on a strategic partnership, in which energy continues to be a key pillar. Serbia has long maintained close relations with Russia, especially in the gas sector, and is significantly dependent on supplies from Moscow.
While many European countries have cut back or sought to get rid of Russian energy after the Ukraine conflict, Belgrade remains steadfast in its position of not participating in Russian sanctions, while maintaining bilateral energy cooperation.
In addition to energy issues, the two leaders also exchanged views on a series of international hotspots, including the Iran conflict, the situation in Ukraine, as well as security in Kosovo and Bosnia & Herzegovina - sensitive areas in the Balkans.
Observers believe that Russia's rapid extension of contracts with Serbia is not only of economic significance but also has a clear geopolitical element, in the context of Moscow seeking to maintain influence in Europe through friendly partners.
On the Serbian side, this agreement helps the government avoid energy price shocks in the short term, while consolidating its negotiating position amid regional market supply scarcity.
