Gas supplies from Azerbaijan to Serbia have been suspended, with no clear timeline for resumption, according to Serbian President Aleksandar Vucic, as reported by the Tanjug news agency. Vucic stated that the suspension was due to force majeure and technical challenges faced by Azerbaijan, halting the daily delivery of 1.7 million cubic meters of gas. “As of today, we will begin using our gas reserves,” he said, expressing hope that supplies might resume within a month or two.

Serbia, which consumes over 3 billion cubic meters of gas annually, had secured an agreement in 2023 to purchase 400 million cubic meters of gas annually from Azerbaijan starting in 2024. Currently, the majority of Serbia’s gas needs are met by Russian imports. However, as Serbia pursues European Union membership, it faces increasing pressure to reduce its dependence on Russian gas and oil.

Recent U.S. sanctions targeting Russia’s oil sector add to this challenge. Russia’s Gazprom Neft, which holds a 50% stake in Serbia’s oil company NIS (Naftna Industrija Srbije), has been given 45 days to divest its ownership. NIS is a major contributor to Serbia’s national budget, with ownership shared among Gazprom Neft, Gazprom (6.15%), the Serbian government (29.87%), and small shareholders.

The suspension of Azerbaijani gas exports to Serbia is part of a broader disruption in the region. Earlier this week, Bulgaria reported a temporary halt in contracted gas supplies from Azerbaijan between January 7 and January 11 due to unspecified technical reasons. The interruption coincided with BP Azerbaijan's announcement of a suspension of operations at the Shah Deniz Alfa (SDA) platform. The stoppage was caused by a technical issue in the subsea gas condensate export line.

These developments underscore the fragility of gas supplies in the region and the challenges Serbia faces in diversifying its energy sources. With the new sanctions and ongoing geopolitical tensions, the country must navigate a complex landscape to ensure energy security while aligning with European Union requirements.

The current suspension has prompted Serbia to tap into its gas reserves, highlighting the importance of securing diversified and reliable energy partnerships. Vucic remains optimistic about the resumption of Azerbaijani gas flows but acknowledges the uncertainty surrounding the timeline. Meanwhile, the broader energy sector continues to grapple with disruptions and shifting dynamics amid geopolitical and technical pressures.