BELARUS NEWS AND ANALYSIS

DATE:

03/11/2006

Reports: Russian ambassador to Belarus suggests lower gas price hike for Minsk

The Associated Press

MINSK, Belarus: Russia's ambassador to Belarus said Friday that Belarus could see a more moderate rise in the price it pays for gas next year than the fourfold increase proposed by natural gas giant OAO Gazprom.

Alexander Surikov suggested that Belarus would not have to cover customs duties on the gas that Gazprom sells it, reducing next year's price from a proposed US$200 (?157) per 1,000 cubic meters to US$140 (?110).

"The customs duty on gas comprises 30 percent of its cost. Therefore I don't exclude that the price will be US$140 (?110) and not US$200 (?157)," Surikov said.

He noted that talks on creating a joint enterprise to oversee the Belarusian gas system, which would have allowed Minsk to keep its low price but given Moscow a strong measure of control, had fallen through.

Belarus currently buys its gas from Russia at US$47 (?37) per 1,000 cubic meters - the last ex-Soviet country to pay such a low rate.

Gazprom has raised its prices for other countries in what it calls a long overdue recalibration to market prices. However, observers have called the company's proposal Thursday to double the price Georgia pays to US$230 (?180) political punishment for Tbilisi's Western-leaning path.

Source:

http://www.iht.com/articles/ap/2006/11/03/business/EU_FIN_Belarus_Russia_Gas.php

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