Bajatovic: Annex on gas supplies signed with Russia, to remain in effect until Sept 30

BELGRADE - Srbijagas CEO Dusan Bajatovic said an annex to an existing natural gas arrangement with Russia had been signed on Friday to extend the deal until September 30.

The annex secures 6.1 mln cubic metres of gas a day for Serbia at a price of 290 euros per thousand cubic metres, Bajatovic said.

As already announced, there will be no price increases for small consumers and the price for businesses will be even lower under the new arrangement, barring any major market disruptions, he said.

The current arrangement expires at end-May and the terms are unchanged in the annex, with the price agreed according to the oil formula, Bajatovic told the RTS.

He said the price of natural gas was currently at 360 euros per 1,000 cubic metres.

"That means we have fared well," he added.

"In practice, that means several things - first of all, that we will be able to fill the storage facility in Hungary to capacity with an additional 150 mln cubic metres and that the Banatski dvor gas storage facility will be filled to capacity by the start of the heating season," Bajatovic said.

He said the next round of talks on Russian gas supplies would be held from June 18 to 21, at the St Petersburg Economic Forum.