BELARUS NEWS AND ANALYSIS

DATE:

26/12/2006

Gazprom-Belarus gas talks end inconclusively, more rounds due

MOSCOW, December 26 (Itar-Tass) -- Talks with Belarus over Russian gas supplies will be continued, but the feeling of unease on the Russian side remains, Gazprom's spokesman, Sergei Kupriyanov, said on Tuesday.

"The negotiations with Belarussian Deputy Prime Minister Vladimir Semashko ended inconclusively to our regret," Kupriyanov said in an interview on Russia's Vesti news channel. "All of the proposals made to Gazprom so far as a matter of fact establish very comfortable conditions for Belarus to make the transition to the free market price over a period of four years. We were prepared to agree to a price of 110 dollars per 1,000 cubic meters on the condition of creating a joint venture with Beltransgaz, but failed to meet with our Belarussian counterparts' understanding."

Kupriyanov is certain there are no reason to fear there may occur disruptions in gas supplies to Europe.

"Gazprom has been building up reserves systematically and their amount is growing," he said. "The Belarussian negotiators keep insisting we must have equitable conditions, equitable opportunities, but in reality their proposals boil down to this - not 80 dollars per 1,000 cubic meters in cash plus 30 dollars with Beltransgaz assets, but on the contrary, 75 dollars with cash less 30 dollars to Belarus for Beltransgaz shares. In the end we get the very same price Belarus has paid for the past two years. Bearing in mind the current market situation, these conditions can hardly be considered impartial."

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=11118666&PageNum=0