BELGRADE, October 6. /TASS/. The energy crisis in Europe was triggered by countries’ failure to sign long-term gas contracts with Russia in time, Serbian President Aleksandar Vucic said on Tuesday during his visit to Slovenia.
"The first reason [behind the energy crisis] is the hydrocarbon tax. And here’s the second one: in March everyone thought the main wave of the coronavirus was beginning to subside, and they wanted to give a boost to their industries with the cheap gas they already had in their storage facilities," the Tanjug news agency quoted the president as saying.
"They [European countries] have run out of their supplies, and did not sign long-term purchase deals with the Russians, and now <…> [Russian President Vladimir] Putin is the absolute ‘kingmaker,’ with the possibility to decide who [will buy] at what price, and how a price should be raised," the Serbian leader continued.
"Now, coal prices have also gone up, and everyone turned their nuclear stations to full capacity. Belarus was not allowed to sell its electricity, but we’ll see how the situation unfolds," he added.
The gas prices in Europe during the October 5 trading set several historical records. At opening of trade on Tuesday it exceeded $1200 per 1000 cubic meters, and by evening it rose over 1,455 per 1,000 cubic meters, going up by $250 in one trading day.
Gazprom Board Chairman Alexei Miller said earlier that the lag in gas injection into European underground storage facilities and the growing demand for gas have led to record prices, the value of which may be exceeded in the near future.
Smart decision
The decision to build the Balkan Stream pipeline (an extension of TurkStream) in Serbia was ‘very smart,’ because it provided the country with natural gas at an affordable price, Vucic said.
"All of a sudden, we are on the verge of the biggest crisis in Europe and all over the world since the coronavirus. The prices are unbelievable, reaching 1,400 per 1,000 bcm. We are buying 1,000 bcm at $270. The decision to build the pipeline despite all pressure that we were facing was a very smart one. We now have enough gas and electricity," the Tanjug news agency quoted him as saying.
In many aspects, the crisis was caused by restrictions, linked to the process of transition to green energy, but no one in the West dares to admit this, the Serbian leader added.
On January 1, Aleksandar Vucic gave the green light to the launch of the Balkan Stream gas pipeline in Serbia, which started receiving natural gas from Russia after that. The pipeline segment in Serbia is an extension of the leg of the TurkStream gas pipeline for gas supplies to Turkey and then to Bulgaria, Serbia and Hungary. The segment’s length is 403 km and the design capacity is 13.9 bln cubic meters per year.
Relations with Russia
Serbia is seeking to become a part of the European Union, but does not want to spoil its friendly relations with Russia and China, the Serbian leader said.
"Residents of Serbia are rational, they want to be a part of the world, a part of the European Union, but Serbian residents do not want to spoil relations with Russia and China, and this proved to be the right thing to do. Why is it the right thing to do? If we had succumbed to pressure of foreign countries objecting the construction of the Russian pipeline <…>, we would have had problems this winter, with no more gas for Serbia coming via Beregovo," he told reporters at a conference, broadcast by the Tanjug agency.
"Secondly, we have set up two major exporting companies [in Serbia] jointly with the Chinese," he added.
Serbia’s foreign policy sets EU membership as a goal, but, at the same time, it also wants to preserve friendly ties with Moscow and Beijing, and to develop friendly relations with Washington. Belgrade also aims to preserve its military neutrality, and has no plans to seek membership in NATO or any other military bloc. This stance raise objections in the West, and Serbia was repeatedly made to understand that its European integration is possible only under two preconditions - recognizing Kosovo’s independence and halting friendly relations with Russia. Lately, Western powers have become increasingly critical of Belgrade’s active cooperation with China.