BELARUS NEWS AND ANALYSIS

DATE:

19/05/2007

Russia signs deal to buy Belarussian pipeline shares

MOSCOW, May 18 (Xinhua) -- Russian gas giant Gazprom signed a deal to purchase a 50 percent stock in Belarussian pipeline monopoly Beltransgaz, Russian news agencies reported on Friday.

Gazprom will pay 2.5 billion U.S. dollars for 50 percent stock. The payment will be done by equal installments in 2007-2010. Each time Gazprom will be acquiring 12.5 percent of Beltransgaz share.

The Beltransgaz stock bound for the transfer to Gazprom shall not be alienated or pawned during that period, the Itar-Tass news agency said.

A special meeting of Beltransgaz shareholders will elect a new supervisory council within 50 days after the Gazprom acquisition of the first 12.5 percent stake in the company.

Gazprom and the Belarussian government also signed a supplement to the protocol on the establishment of a Russian-Belarussian gas transport organization, gas deliveries and transfer across Belarus, which was signed on Dec. 31, 2006.

In winter, Russia and Belarus were embroiled in an oil and gas dispute after Gazprom doubled the natural gas price to 100 dollars per 1,000 cubic meters as part of a process of gradually bringing former Soviet republics in line with market rates for energy supplies.

Minsk responded by introducing a transit levy of 45 dollars per metric ton for Russian oil pumped to Europe via Belarus. Russia then briefly halted gas supplies to Europe, accusing Belarus of tapping its crude while in transit.

The neighbors eventually signed a contract on Russian natural gas deliveries to Belarus and on gas transit via its territory to Europe two minutes before New Year, ending a long-running dispute over natural gas prices. The contract also defines the gas price formula for the period starting from Jan. 1, 2008, which corresponds to the formula of Russian gas prices for Europe that depends on the market situation and prices.

Editor: Jiang Yuxia

Source:

http://news.xinhuanet.com/english/2007-05/19/content_6122565.htm