Serbia, Russia Reach Agreement on Settlement of Gas Debt

Serbian prime minister Aleksandar Vucic has agreed with Russian president Vladimir Putin a model for the settlement of the Southeast European country's gas supply debts towards Russia, the government in Belgrade said.

Vucic and Putin have agreed on cooperation in all matters related to the delivery of Russian gas to Serbia, on the debt settlement model and on favorable gas supply for three large Serbian chemical plants, the government said in a statement on Wednesday after Vucic talked with Putin over the phone.

The two sides have agreed to maintain regular contacts so that all relevant issues of common interest could be resolved in a cooperative and friendly manner, the statement said.

Gazprom Export delivered 1.14 billion cubic metres of gas to Serbia in 2013 as part of a 10-year supply agreement. The Balkan state has just one gas supply route, coming via Ukraine and Hungary.

In October, news agency Tanjug quoted Serbian energy minister Aleksandar Antic as saying that Serbia's unpaid bills for Russian gas total $224 million (179.2 million euro).

On Tuesday, local media quoted Vucic as saying that Serbia can settle 100 million euro of its total debt to Russia but that paying 200 million euro in one tranche or by March would be a problem and would impact public debt and fiscal deficit levels, which the government wants to keep under control in 2015.

Source: SeeNews