The announcement comes amid escalating energy challenges for Serbia. On Friday, the U.S. imposed sanctions on NIS, Serbia’s largest oil company, due to its majority ownership by Russian firms Gazprom and Gazprom Neft. Since 2008, Russian entities have controlled approximately 96% of NIS shares.

According to Vučić the U.S. demands the complete withdrawal of Russian capital from the company, rejecting the possibility of Russian ownership even below 49%.

Vučić said that Azerbaijani authorities cited internal issues as the reason for the halt, leaving Serbia to depend more heavily on its gas reserves.

Azerbaijani gas deliveries to Serbia began in late 2023, marking the first winter Serbia could count on this alternative to Russian supplies. Until then, Serbia was heavily reliant on Russian gas, with domestic production covering only 13% of its needs.

The pipeline carrying Azerbaijani gas was co-financed by the European Union which paved the way for Serbia to a much-needed diversification of energy sources.