Serbian minister assures no impact from suspension of Russian gas transit via Ukraine

Serbia's energy supply will remain unaffected by the suspension of Russian gas transit through Ukraine, according to Serbia’s Minister of Energy and Mining, Dubravka Dedović-Handanović.

The minister emphasized that Serbia’s energy needs are met via alternative routes, ensuring that Serbian citizens will not face disruptions in gas supplies, Caliber.Az reports via Russian media.

"Perhaps the European market will feel some consequences, but we will try to prevent any impact on Serbia," said Dedović-Handanović in a statement, acknowledging potential repercussions for Europe but stressing that Serbia remains insulated due to its energy strategy.

The minister added that it is essential for Serbia to maintain sufficient energy reserves and keep energy prices stable, especially amid the current volatile geopolitical climate. "For Serbia, it's vital to have adequate energy resources in reserve and to stabilize prices, despite the difficult geopolitical situation," she said.

Dedović-Handanović also reflected on the strategic foresight that enabled Serbia to secure its energy independence. "The construction of the 'Balkan Stream' pipeline was completed in the midst of the COVID-19 pandemic, thanks to the strategic vision of President Aleksandar Vučić and the Serbian government," she noted.

As of now, Serbia’s gas reserves stand at 440 million cubic meters, while coal reserves are at 1.6 million tons. "We will continue to plan carefully and ensure the availability of energy resources, increase our reserves, and maintain a continuous supply of energy. Some of our facilities have reached their economic lifespan, so we will need to modernize them to keep them operational. I believe that 2025 will be a year when we will need to carry out major repairs to feel more confident in the coming years," she said.

Meanwhile, Serbia is benefiting from increased gas imports through the "Turkish Stream" pipeline, which saw a 23% increase in 2024, reaching 16.7 billion cubic meters. This is part of a wider trend, with Russian gas exports to Europe through this route growing by 3% in December 2024 compared to November, and a significant 14% surge compared to December 2023, reaching 1.53 billion cubic meters.

The "Turkish Stream" pipeline was developed as an alternative to the "South Stream" project, which was canceled following Bulgaria's refusal to allow the pipeline to cross its territory. The new route provides gas supplies to Bulgaria, Hungary, and Serbia, ensuring stability for these countries despite the ongoing geopolitical tensions.

The suspension of Russian gas transit through Ukraine took effect on January 1, 2025, after the expiration of a 40 billion cubic meters-per-year agreement. The termination of this deal came after Ukraine declined to extend the agreement, effectively leaving Gazprom without the legal or technical ability to continue using this route for gas delivery. On January 1, supplies were halted.

Russian President Vladimir Putin confirmed that no new contract would be signed for the transit of Russian gas through Ukraine, given the short time frame leading up to the New Year. "It is impossible to conclude a new agreement so quickly," he stated. Meanwhile, Ukraine announced its intentions to cease Russian gas transportation altogether.

By Vugar Khalilov