Djedovic Handanovic: Foundations defined for extending natural gas deal with Gazprom

BELGRADE - Minister of Mining and Energy Dubravka Djedovic Handanovic said on Wednesday Serbia's current long-term natural gas deal with Russia's Gazprom was expiring at the end of May but that the foundations had been defined for extending it to ensure energy security in Serbia.

"We intend to sign an agreement that will last a minimum of three years or possibly even longer, and where, as until now, the price will be defined by the oil formula for certain quantities from a long-term agreement. The flexibility of drawing (gas supplies) in the summer and winter, depending on consumption, is also very important," Djedovic Handanovic told the Politika daily.

She noted that Hungary's confirmation that it would draw higher quantities of natural gas from the Balkan Stream pipeline meant that transit fees collected by Serbia would be increased, too.

Djedovic Handanovic also said the European Commission was due to decide whether the Jadar lithium mining project in Serbia would be declared a strategic one even though Serbia is not an EU member state.

"An environmental impact assessment study requested by the state must be completed. It is only after that that we will know whether we will be carrying out the project. That is a process that will take at least a year and a half, and the most eminent experts - not politicians - are working on that," the minister said.