Starović: It is important to get a new arrangement for gas supply from Russia

25. Nov 2021.
State Secretary in the Ministry of Foreign Affairs, Nemanja Starović, stated that it is important for Serbia to agree on a new multi-year agreement with Russia on gas supply as soon as possible, due to the urgency of the situation we are in today.

Ahead of the meeting between the President of Serbia Aleksandar Vučić and the President of Russia Vladimir Putin, Starović, as a guest on TV Prva, said that it is important that we reach as much of this complex agreement as possible today, so that later, at the level of companies, Srbijagas and Gazprom Export, everything would be defined in the commercial contract.

"Today, we pay the price of 270 dollars per 1,000 cubic meters of gas that we buy from Russia, which is the price defined by the so-called oil formula. We see that prices on the market today are much higher, exceeding $ 1,000 per unit of measurement, which means when we consider our planned consumption, which grows every year due to the process of reindustrialization, but also the development of the secondary gas network, the planned quantities are three billion cubic meters per year", said Starović.

According to him, that in money ranges from about 800 million dollars, which we would pay at existing prices, to even more than three billion dollars a year, if we look at market prices.

"The range is huge, each, one dollar per 1,000 cubic meters, having in mind the planned consumption, would mean three million dollars a year more than today. These are extremely important contracts, the price is important, but it is not the only thing that is important, the conditions of so-called flexibility are equally important, which we really need", says Starović.

He explained that this means that in case of need for additional quantities of gas, the price will be the same as planned, and not many times more expensive.

Asked whether reactions and criticism from the West can be expected if Serbia gets gas from Russia at a lower price, Starović said that it is not realistic to expect the price to be lower than the existing one, because we are not a direct importer and added that there have always been reactions, and that Serbia is committed to diversifying both sources and directions of supply.

Asked about the allegations that the United States is returning to a tougher policy in the Balkans and how much Russia can oppose it, Starović said that he would not view it in terms of a confrontation, and that it is quite natural and logical for the United States to spread its interest on all points of the planet.

According to him, the increased interest of the USA in the region could be positive in some of the scenarios, if we look at the help of the USA in reaching the Washington Agreement, to which the current American administration remains committed, just like Serbia.

Regarding the refusal of the Prime Minister of the Provisional Institutions of Pristina, Albin Kurti, to respect the Washington, but also the Brussels Agreement, Starović said that what Kurti has been doing for months back is throwing a glove in the face not only of official Belgrade, but also of Brussels mediators, and that Kurti speaks openly that they are not interested in either the Brussels or the Washington agreement.

Starović said that it is very important that we finally get an answer from European mediators whether the Brussels Agreement is in force or not, and when asked which countries are ready to withdraw the recognition of the so-called Kosovo, he stated that Belgrade is committed to respecting the Washington Agreement and that because of that commitment, it cannot talk about the number and names of countries.