BELARUS NEWS AND ANALYSIS

DATE:

22/08/2007

Gazprom confirms Belarus' paying for gas in full

MOSCOW, August 22 (Itar-Tass) - Belarus has fully paid for the Russian natural gas supplied to the republic in July, the press service of the Russian giant gas producer Gazprom confirmed to Itar-Tass on Wednesday.

Earlier on Wednesday, the statement on Belarus' footing its gas bill came from the Beltransgaz Russian-Belarus joint venture.

Belarus had problems with payments in the first half of this year.

On August 1, under the Belarusian-Russian gas supply and transit contract in 2007-2011. Gazprom sent to Beltransgaz an official notification about possible cuts of gas supplies to Belarusian consumers over the non-fulfillment of payment liabilities for gas supplies in the first half of 2007 and the lack of payment guarantees. Since 10.00 Moscow time on Friday, the Russian side intended to cut by 45 percent the daily gas supplies to Belarus in proportion to actual payment.

On December 31, 2006, Gazprom and Beltransgaz signed the gas supply and transit contract in 2007-2011. The document sets forth a Russian gas price at 100 dollars per 1,000 cubic meters of gas in 2007. Meanwhile, under the contract the Belarusian side paid for 55 percent of gas supplies in the first half of 2007, but under the condition of repaying the remaining sum before July 23 and the transfer to the full payments for gas supplies as of July 1, 2007. Belarus' gas debt amounted to 456.16 million dollars in January-June 2007. The current contract was violated, the payments for gas supplies were not effected on time and no guarantees for payments were given.

The European Commission's coordinating group intended to convene a meeting over the Russia-Belarus gas crisis, but it was called off as the situation was settled.

The European coordinating group comprises representatives of governments and energy companies of 27 EU member states, as well as European officials. Its extraordinary sessions are held when a threat to the EU energy security emerges, in particular, over risks of reduction of energy supplies to Europe.

On August 2, Belarusian President Alexander Lukashenko stated he had ordered to withdraw 460 million dollars from the republic's reserve and remit this money to Gazprom to pay the gas bill.

"I instructed the government to withdraw from the reserve fund 460 million dollars and pay Russia for the gas," Lukashenko said.

The president believes that "this is not a sum is for his country."

"Let them take this money as live as they plan to live," he said in his usual emotional manner.

Belarus began to make payments from August 3, and fully paid the debt on August 8.

Beginning from August, Belarus will pay 100-percent for the Russian fuel, First Deputy Prime Minister Vladimir Semashko said.

"We'll be paying 100 percent of the price of supplied gas beginning from August. Under the contract with Gazprom, August 23 is the date of payment for the gas consumed in July. It's approximately 150 million dollars," Semashko said.

Belarus has kept its promise, paying for the Russian gas one day earlier, he added.

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=11808206&PageNum=0