Serbia agrees "favourable" Russian gas supply deal

Serbia's president Aleksandar Vucic has agreed outline terms on a three-year gas supply deal with Russia's Gazprom, following talks with his Russian counterpart Vladimir Putin, local media reported on May 29.

Under the proposed deal, Gazprom will provide Serbia with gas at the "most favourable price in Europe," Vucic told reporters. He said this price would be indexed to oil, without providing further detail.

Though a candidate for EU membership, Serbia has not joined the bloc in its sanctions against Russia, and is looking to maintain warm relations with Moscow. Many of the country's largest energy companies are under Russian ownership, and it gets almost all its energy supply from Russia. As such, Vuvic said that imposing sanctions on Russia would be disastrous for Serbia.