Analysis 28 Sep 16

Sanctions Deadline Looms for Serbia over Gas Company

After missing a deadline to ‘unbundle’ Srbijagas, Serbia faces sanctions in October that may impede its EU accession negotiations.

Stevan Veljovic
Savic argues that it is also in the country’s interest to make Srbijagas more efficient. Photo: Media Centre Belgrade.

Serbia faces the prospect of sanctions from the Energy Community on October 14 following its failure to restructure Srbijagas, the state-owned gas utility, which is highly dependent on Russia.

“The [Energy Community] Secretariat has sent many letters to the Serbian authorities but to no avail.

“The decision on measures against Serbia will be announced officially on 14 October in Sarajevo, and will enter into force immediately,” the Secretariat said.

Experts say the issue of the Serbian gas provider has become a political hot potato in which the EU and Russia hold different interests.

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