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20.12.2017 13:09

Belgrade is now allowed to re-export Russian gas

Putin: Connecting Serbia to Turkish Stream is under consideration

AUTHOR: publics.bg

© Russian Presidential Executive Office

Serbia is allowed to re-export Russian gas and there is an option to connect to Turkish Stream, international agencies reported.

Russia's government said it adopted an amendment of an intergovernmental agreement with Serbia to allow the Southeast European country to re-export Russian natural gas to third countries, SeeNews reported. The Russian government has adopted a protocol which annuls an article of an intergovernmental agreement, which reads that natural gas supplied to Serbia is intended for consumption in the Serbian market.

Gazprom has reportedly agreed to drop clauses restricting the re-export of Russian natural gas from countries in Central and Eastern Europe to settle a dispute with European Commission. In 2011, the Commission accused the Russian energy giant of abusing its market position in Central Europe by overcharging customers and by preventing them from re-exporting gas, SeeNews reminded. Landlocked Serbia imports 82% of the gas it needs from Russia through a pipeline crossing Hungary and Ukraine. The rest comes from domestic sources. Belgrade works on a project for the construction of a gas link with Bulgaria, which is expected completed by 2019 and become operational a year later.

Moscow and Belgrade are exploring an opportunity of connecting Serbia to the Turkish Stream gas pipeline, Russian President Vladimir Putin said after talks with his Serbian counterpart Aleksandar Vucic, TASS reported.

"The issue of connecting Serbian partners to the Turkish Stream, the construction project of the new supply route of energy resources implemented by Gazprom, is under consideration," Putin said.

Other Russian energy companies are also working successfully on the Serbian market, the Russian head of state said. Gazprom Neft continues upgrading its NIS subsidiary in Serbia. Lukoil owns a chain of 115 retail sites and two oil depots. Russia’s Power Machines are ready to participate in technical upgrade of Serbian power installations.

Russia's Gazprom has agreed with Serbia's Srbijagas to increase the contacted volume of gas supply as of next year to 2 Bcm/year from the current 1.5 Bcm/year, Gazprom said, Platts informed. Serbia, which is almost entirely dependent on Russian gas imports, has been importing above its contracted volume in 2016 and 2017, with the additional volumes supplied under supplementary agreements. Last year, Serbia received 1.75 Bcm/year of Russian gas – above its 1.5 Bcm/year contracted volume – and this year it already exceeded that level in mid-November. Russia supplies gas to Serbia under a deal signed in 2013 that is valid until the end of 2021. The increased volumes are part of an addendum to the existing medium-term deal.