BELARUS NEWS AND ANALYSIS

DATE:

22/08/2006

Talks on Russian gas price for 2007 to begin in fall - Belarus

MOSCOW, August 22 (RIA Novosti) - Negotiations on the price Belarus will pay next year for Russian natural gas will be held in the fall, the Belarusian ambassador to Russia said Tuesday.

After raising gas prices for several of its other ex-Soviet neighbors, Russia said it would pursue a European price formula for Belarus in 2007, and offered to partially compensate for the price hikes in exchange for control over Belarus' gas routes leading to Europe.

Vasily Dolgolev said, "Negotiations will open in the fall. I think the price structure will be clear in October-November."

The price of gas supplies to Belarus has not changed since 2004, and currently stands at $46.68 per 1,000 cubic meters. Russia is seeking a price in the region of $180-200 - a move expected to tear a hole of around $2 billion in the Belarusian budget.

The ambassador also said the volume of gas supplied to Belarus would be regulated by the energy balance of the Russia-Belarus union state, established until 2020.

Russia and Belarus have been mulling the formation of a union state since they signed an agreement on April 2, 1997 on creating a common economic, customs, and political space, but negotiations have stalled recently over a number of issues, including gas prices.

Source:

http://en.rian.ru/world/20060822/53003544.html