BELARUS NEWS AND ANALYSIS

DATE:

27/01/2007

Belarus, Gazprom to Continue Consultations on Gas Shipment Joint Venture

MINSK. Jan 26. (Interfax) - The Belarusian government and Gazprom (RS: GAZP) will continue consultations at the expert level on a draft agreement for the creation of a gas transportation joint venture on the basis of OAO Beltransgaz, Interfax was told at Belarus' State Committee for Property following a meeting of working groups at Gazprom on Jan 25.

The State Committee noted the "constructive and business" nature of the consultations for the creation of a joint venture.

According to earlier reports, a final agreement on the practical mechanism for the creation of the joint venture is necessary for Belarus to make a "state decision" [presidential decree] to sanction the sale of 50% of Beltransgaz to Gazprom.

The draft document prepared by the State Committee for Property establishes the conditions of the deal with Gazprom. According to earlier agreements, Gazprom will, between 2007 and 2010, buy 12.5% of Beltransgaz shares yearly, gradually raising its stake to 50% in 2010. It will pay $2.5 billion in four years. Gazprom will assume the property and manage the company only after four years, when it fully acquires 50% of Beltransgaz.

The deal does not provide for an additional emission of Beltransgaz shares or an increase of their nominal value.

Source:

http://www.blackenterprise.com/yb/ybopen.asp?section=ybbf&story_id=102571004&ID=blackenterprise