As we approach winter, the issue of gas supply becomes ever more pressing, particularly as this season marks the first time in history that we are sourcing this energy from Azerbaijan.
The good news is that gas and electricity prices will not rise. However, will we be able to secure additional supplies from Russia? A new gas arrangement was precisely the focus of a recent phone conversation between Aleksandar Vučić and Vladimir Putin, and you can find more details on this topic at Bloomberg Adria’s portal.
Additionally, the recent BRICS Summit held from October 22 to 24 in Russia caught our attention, as did the venture capital market in Serbia, specifically investments in AI startups, and Tesla car sales.
Here are five key things you need to know as we wrap up this workweek.
Does Serbia have a long-term gas agreement with Russia?
A month and a half after the Russian president invited Serbia to begin negotiations on a new long-term gas contract, given that the current one expires early next year, Serbia’s president informed the public that these talks will soon begin. Recently, Putin and Vučić spoke by phone, resulting in an agreement to secure additional gas supplies for Serbia this winter, although a long-term deal has not yet been reached.
This winter, gas prices for Serbia will be up to $350, with a worst-case scenario of $370 per cubic meter. Serbia will receive six million cubic meters of gas daily under the oil-linked pricing formula of the 2022 agreement, plus an additional two million cubic meters daily for Russian companies in Serbia, including the Oil Industry of Serbia, Petrohemija, TETO Novi Sad, and TETO Pančevo. Additionally, Serbia will be able to draw an extra three million cubic meters per day from Russia as needed.
Conclusions from the BRICS Summit
The 16th BRICS Summit was held in Russia from October 22 to 24, during which Bloomberg Adria raised several questions: What are the risks associated with investing in BRICS member countries, what opportunities exist for those considering joining the alliance, and what promises are made in the Kazan Declaration adopted on Wednesday?
Regarding Serbia, President Aleksandar Vučić was absent from the summit, but four ministers represented the country. This year’s summit stands out as particularly significant, laying a foundation for future expansion and including Putin’s calls for other countries to consider joining or exploring membership.
Serbian-American startup secures investment from local VC fund
The Serbian VC (venture capital) market is still in its early stages, but it’s growing, which is good news for those who previously had to seek such investments elsewhere. The latest investment from a local VC fund went to the Serbian-American startup Connect The Dots, with TS Ventures participating in the Series A funding round. However, despite the rise in VC funding for Serbian startups, there remains a shortage of domestic VC funds.
Connect The Dots is an innovative business platform that uses artificial intelligence to map professional connections, analyzing business communication aspects to provide users with insights into their business networks and opportunities. This highlights a strong synergy between the VC market and AI, which could serve as an incentive for other startups.
It’s also worth noting that the latest Startup Scanner from the Digital Serbia Initiative reported that one in three startups in Serbia is developing products with AI applications.
Tesla boosted by Q3 results
Tesla’s announcement of its Q3 2024 financial results brought a ray of optimism in what has otherwise been a relatively challenging period for the company. The past quarter has been marked by investor skepticism, particularly following the eccentric “We, Robot” event, which saw the stock drop by 8.8%, notes Ilija Nešić, an analyst at Bloomberg Adria.
However, Tesla shares have since rebounded, with total revenue increasing by 7.8% in the third quarter, despite slower car sales growth. Enthusiasm for Tesla’s automotive business has been reignited with the announcement of a more affordable compact electric vehicle expected to launch by 2025—a move long-awaited by investors.
Regional news: EU Commission President visits the Balkans
In regional news, European Commission President Ursula von der Leyen is visiting Bosnia and Herzegovina, where she will meet with members of the Presidency of Bosnia and Herzegovina and Council of Ministers Chairwoman Borjana Krišto. Following this, she will continue her Western Balkans tour with a visit to Serbia, where meetings with President Aleksandar Vučić and Prime Minister Miloš Vučević are scheduled.
(Bloomberg Adria, 25.10.2024)
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