BELARUS NEWS AND ANALYSIS

DATE:

06/11/2006

Russia Threatens To Quadruple Gas Price For Belarus In 2007

Russian Ambassador to Belarus Aleksandr Surikov told journalists in Minsk on November 3 that Russia may rise its gas price for Belarus fourfold in 2007 unless it obtains some degree of control of Beltranshaz, Belarus's gas-pipeline operator, Russian and international news agencies reported. "Russia has reached a decision on mutually beneficial cooperation between countries, including CIS countries, and has designated the price of gas for its partners. This is $200 [for 1,000 cubic meters] for Belarus, $217 for Lithuania, and a little more for Western Europe due to transit," Surikov said. "I'm not ruling out that the price for Belarus will be not $200 but $140, taking customs duties into consideration," he added. Surikov hinted that the gas price for Belarus could be reduced if Minsk decided to sell a 50 percent stake in Beltranshaz to Gazprom. The Netherlands' ABN AMRO bank is reportedly to conclude appraising Beltransgaz's assets later this month. Belarus currently pays $47 per 1,000 cubic meters of Russian gas. JM

...AND WANTS SHARE IN DUTIES FROM REFINED OIL EXPORTS

Ambassador Surikov also told journalists in Minsk on November 3 that Russia may cut oil supplies to Belarus if the two sides fail to agree to unify duties on oil products refined at Belarusian refineries from Russian crude oil, Russian and international news agencies reported. Surikov said Russia wants Belarus to raise the duties for refined oil exports to the Russian level of $180 per ton from the current $57. Moscow also wants Belarus to transfer up to 85 percent of the amount raised from the new oil products duties to the Russian state budget. Belarus contracted 19.75 million tons of Russian crude oil for 2006 and wants to receive 21.5 million tons in 2007. JM

Source:

http://www.rferl.org/newsline/2006/11/3-cee/cee-061106.asp