Belgrade would go bankrupt if not for the “unbelievable worth” of Russian gasoline, President Aleksandar Vucic has stated

Serbs wouldn’t have to save lots of power and scale back their consumption this winter due to Belgrade’s insurance policies and gasoline imports from Russia, President Aleksandar Vucic informed his fellow residents in an handle on Saturday. 

“There are not any plans for electrical energy restrictions subsequent winter,” he stated, including, nonetheless, that the scenario within the power subject stays “extraordinarily tough.” On the identical time, the Serbian cupboard is predicted to offer “massive reductions” to those that did save electrical energy this 12 months compared to the earlier one, he stated. 

Such measures have turn out to be doable significantly as a consequence of gasoline imports from Russia, the Serbian chief believes. Serbia purchases 2 million cubic meters of gasoline – or between 63% and 64% of all gasoline it wants – from Russia and its whole value quantities to €800 million ($797 million), Vucic stated, calling such a worth “unbelievable.” 

If Belgrade had to purchase gasoline on the present European market costs, it might go bankrupt, he stated, arguing that the remaining 1.2 million cubic meters of gasoline – or round 36% of its whole consumption – would value Serbia €4.8 billion ($4.7 billion) now. “And our complete price range is round €13 billion,” the president stated. 

Vucic additionally praised a deal Belgrade struck with Budapest that might see Hungary storing between 300 and 500 cubic meters of gasoline bought by Serbia in its gasoline storages. The Serbian president’ feedback come because the European gasoline costs proceed to soar. September futures on the TTF hub within the Netherlands rose to almost $3,500 per thousand cubic meters on Friday, based on information on the London ICE trade.

The EU is presently attempting to resolve its power disaster, sparked significantly by the bloc’s resolution to rid itself of the Russian gasoline provides amid the battle in Ukraine. The EU has known as on all member states to cut back gasoline consumption by 15% to ease the burden of the hovering gasoline costs. 

In mid-June, Vucic introduced he agreed a good worth for Russian pure gasoline imports below the phrases of a brand new power cope with Moscow. Serbia was anticipated to purchase Russian gasoline at a worth of between $360 to $410 per 1,000 cubic meters, he stated at the moment. 

Based on the president, Serbia nonetheless incurred important losses as a consequence of EU sanctions on Russia, significantly on oil. Though Serbia will not be a part of the European Union, the nation’s power provides transit by EU nations, which means that any EU sanctions on Russia have an effect on Serbia as nicely. 

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