BELARUS NEWS AND ANALYSIS

DATE:

19/05/2007

Gazprom Buys Half of Beltransgaz for $2.5 Billion

Gazprom and the State Property Committee of Belarus signed on Friday in Minsk the agreement to purchase and sell Beltransgaz shares, RIA-Novosti news agency reported with reference to Gazprom's press service.

Gazprom will pay $2.5 billion for 50 percent of Beltransgaz. The Russian holding will acquire Beltransgaz's shares in four stages by 12.5 percent from 2007 to 2010.

The companies have also agreed to gradually raise the wholesale extra charge on natural gas sold by Beltransgaz. Another agreement they reached is that the state will not have privileges in managing Beltransgaz.

Gazprom's spokesman said on Friday morning that the agreement's signing is postponed till a later date, approximately June 1st.

The agreement on Russian gas supplies to Belarus signed on December 31, 2006, obligates Gazprom to supply 21.8 billion cubic meters of natural gas to Belarus in 2007, at the price of $100 per 1,000 cubic meters. Afterwards, the price on Russian gas for Belarus will be calculated according to the formula used for European consumers.

Nearly 45.8 billion cubic meters of Russian gas will be transported thru Belarus' territory in 2007.

Source:

http://www.kommersant.com/p-10746/natural_gas/