Being reliant on a single gas source in a time when Europe and the rest of the world are diversifying their energy supplies—whether due to ignorance or corruption—has put Serbia in a vulnerable position. This situation results in yearly concerns about gas availability and price fluctuations, according to Goran Radosavljević, a member of the Presidency of the National Movement of Serbia (NPS) and economist.
Radosavljević argues that the government’s irresponsible energy policy in the past decade, compounded by corruption and poor management, has created a high level of energy insecurity in Serbia. He highlights that following the collapse of the power system in 2022, which was caused by incompetent leadership and corruption within the Electric Power Industry of Serbia (EPS), the country now faces the threat of a potential breakdown in its oil and gas sector.
“The latest sanctions imposed on Serbia’s oil industry, where the state holds about 30 percent ownership, demonstrate once again the dangers of short-term energy policies in a globalized world,” Radosavljević explained. “The situation is even more critical when you consider the market’s excessive concentration in one company, which controls around 80 percent of the wholesale petroleum derivatives market in Serbia.”
He further stressed that a potential shutdown of the Pancevo Oil Refinery—due to sanctions and the resulting inability to import crude oil—could lead to a shortage of petroleum products or a significant rise in prices across multiple sectors, ranging from food production to transportation.
Radosavljević calls for a major shift in Serbia’s energy policy, which should focus on diversifying energy sources and supply methods. In the short term, this includes addressing the issues in the oil sector caused by sanctions, increasing gas storage capacity, leasing transport capacity for liquid natural gas at regional terminals, and transforming EPS into a regional energy company.
For the medium term, he advocates for the liberalization of the oil and gas markets, alignment with EU energy packages and directives, and the construction of new energy production capacities utilizing hydro, wind, and solar power. Additionally, Serbia should urgently join regional nuclear energy initiatives with countries such as Croatia, Hungary, or Bulgaria. He stresses the importance of professional management in the energy sector to ensure the long-term stability of Serbia’s energy security.
Without these changes, Radosavljević warns, both citizens and the economy will continue to face uncertainty regarding energy security in the foreseeable future.
