OREANDA-NEWS Serbia and Russia are working to find a solution for the unhindered supply of gas to Serbia in connection with the new US sanctions against Gazprombank, Dusan Bayatovich, CEO of the state-owned Srbiyagaz company, told RIA Novosti.

The United States on Thursday imposed sanctions against Gazprombank and six of its foreign subsidiaries.

"By the decision to include Gazprombank in the sanctions list, the outgoing US administration tried to punish all European states that buy gas from the Russian Federation. The largest buyers of Russian liquefied natural gas (LNG) are France, Spain and Belgium, and Hungary, Slovakia, of course, Serbia, but also many others are supplied through the pipeline," Bayatovich told the agency and added that these sanctions are directed against Russian gas, and Gazprombank is used "only as a mechanism for their implementation".
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According to the CEO of the Serbian state-owned company, sanctions are becoming more and more part of the personal showdowns of the outgoing US administration, "which will only cause further suspicion and, above all, disappointment for a large part of the business elite."

"We are working intensively with colleagues from Russia to find a solution to ensure an unhindered gas supply to the Republic of Serbia. Some solutions are already being reviewed, but a high degree of coordination of all participants in the process is required. We hope that the new American administration will have a different approach to solving the issue of European gas supply and financial sanctions aimed at paying for the necessary energy resources," Bayatovich stressed.

Serbian President Aleksandar Vucic announced in mid-November that Serbia pays 60-63% of the market price for gas from Russia, while heating costs are rising to record levels - about 14 million cubic meters per day. According to him, now official Belgrade is paying for gas at a price of $ 323 per 1,000 cubic meters, and the price on the market now on the (stock exchange in the Netherlands – ed.) TTF is $ 520 per thousand cubic meters.

Russia's Gazprom remains the main supplier of gas to Serbia. For the upcoming heating season, an agreement has been reached on supplies according to the formula 6+2+3 one million cubic meters per day, according to the Serbian authorities, "at the most favorable price, taking into account the oil formula." In the spring of 2025, it is planned to extend the next multi-year gas supply agreement with the Russian Federation. Russian fuel is supplied to Serbia from the Turkish Stream gas pipeline through Bulgaria's gas transportation system, and volumes are expected to reach 4 billion cubic meters per year in the coming years.