BELARUS NEWS AND ANALYSIS

DATE:

25/07/2007

Gazprom buys stake in Belarussian gas transportation company

MINSK, July 25 (Itar-Tass) - An irregular shareholders' meeting of Beltransgaz opened in the Belarussian capital Minsk on Wednesday.

The shareholders are to elect a new supervisory board of the gas transportation company, in which Gazprom has brought a stake.

The Russian gas monopolist is to place its people on the board of the already joint company and find a solution to the problem of Belarus' gas debt.

One representative of Gazprom, Vasily Golubev, is expected to join the new eight-member supervisory board according to the bought proportion of shares.

At the beginning of June, Gazprom remitted to the Belarusian budget 625 million dollars for 12.5 percent of Beltransgaz's shares after which it became the owner of the first part of the 50 percent stake.

Gazprom plans buying the whole 2.5-billon dollar block of shares in 2007-10.

Talks are to resume in the Belarussian capital on Wednesday between Beltransgaz and Gazprom on the repayment of Belarus' 500-million dollar gas debt to Russia.

Their first stage finished in Moscow on Tuesday.

Belarus' debt formed since the beginning of this year after Russia's increasing the gas price twofold.

Belarussian First Deputy Prime Minister Vladimir Semashko said Belarus was allowed to pay during the six month of this year 55 percent of the real gas price, which is 100 dollars for 1,000 cubic meters.

Later Belarus is to begin paying the whole price and clear the debt.

The Belarussian side has asked for debt rescheduling. According to unofficial sources, it is ready to pay penalties for delays in debt repayment.

Official Belarussian sources do not disclose information about the debt talks and the irregular shareholders' meeting.

Beltransgaz has not informed on its official web site about the shareholders' meeting and its agenda.

The company's press service only promised to report results of the meeting.

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=11743684&PageNum=0