Serbia Seeks 10% Russian Gas Price Cut Next Year

Serbia expects Russian energy giant Gazprom to cut the price of natural gas supplies next year by a further 10 percent, Srbijagas CEO Dusan Bajatovic said on Monday.

Under a contract signed between Srbijagas and YugoRosGaz, a Gazprom subsidiary in Serbia, the Balkan republic currently pays $470 per 1,000 cubic meters for Russian gas supplies, or 12 percent less than last year.

Serbia wants Gazprom to cut the price to $420 next year, which corresponds to a 10 percent price cut.

“The cut will have no impact on the gas price for final consumers who now receive it at a price 30 percent below the market value,” Bajatovic said in a live broadcast of RTS national television.

Srbijagas is currently owed 800 million euros while the company owes 630 million euros to banks, he said.

Russia is the main supplier of natural gas to Serbia. The 2012 contract between Srbijagas and YugoRosGaz envisages gas supplies of up to 2 billion cubic meters

 

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