BELARUS NEWS AND ANALYSIS

DATE:

26/12/2006

Gazprom will continue deliveries through Belarus

MOSCOW, December 26 (RIA Novosti) - Gazprom [RTS: GAZP] said Tuesday it will continue to deliver Europe-bound gas to the Russian-Belarusian border from January 1 even if no gas contract is signed with Minsk, the head of Gazprom's export subsidiary said Tuesday.

"All volumes of gas on our export contracts will be delivered to the Belarusian border on January 1 even if we sign no contract with Belarus," said Alexander Medvedev, head of Gazexport.

"I do not want to forecast Belarus's behavior in this case," he said, adding that Gazprom's proposals to Belarus were beneficial for Minsk.

Belarus's contract for Russian gas supplies expires in five days.

"Supplies can never be suspended if a contract has been signed," Medvedev said. "We have neither a short-term nor mid-term contract with Belarus."

Answering the question about what Gazprom's actions will be if Belarus taps gas when no contract is signed, Medvedev said there are international organizations where Gazprom can turn to.

Medvedev also said gas reserves in underground storage facilities could cover its deficit in crisis situations, regardless of what caused them.

"In crisis situations we used them and will use them," he said.

He said Gazprom has gas storage capacities in Europe, including Germany.

Medvedev also said gas transit via Belarus is not linked to gas supplies to that country. "Transit and supplies issues are not and will not be linked," he said.

Medvedev said Belarus, when refusing to accept Gazprom's proposals, is either incapable of assessing their economic element or is deliberately trying to frustrate the talks.

"I would not like to use sharp lexicon, but people who reject such proposals either don't understand and can't assess the economic element or are deliberately trying to foil the talks," Alexander Medvedev said.

Gazprom made its best offer on deliveries of natural gas to Belarus in 2007, Medvedev said, which apparently meant that if Belarus does not accept it, there will be no more talks and gas will not be supplied to Russia's neighbor in 2007.

Gazprom wants Belarus to pay $75 per 1,000 cubic meters plus $30 in Beltransgaz shares, while Belarus is ready to pay $45 per 1,000 cu m plus $30 in shares of the Belarusian government-owned pipeline company, Gazprom spokesman Sergei Kupriyanov said.

"We have exhausted in improving of our proposals to Belarus," Medvedev said. "We have taken into account all Belarusian wishes. The proposals that we have made take into account specifics of the Belarusian economy and our [bilateral] union relations."

Medvedev added that "the proposals that we have made are more than beneficial."

Gazprom agreed earlier Tuesday that Beltransgaz, which controls Europe-bound gas pipelines, was valued at $5 billion.

Following a meeting with Belarusian Deputy Prime Minister Vladimir Semashko, Gazprom Chief Executive Officer Alexei Miller said the gas giant was ready to make concessions to Belarus on all issues.

"Considering our partnership in the gas sector, we found it possible to provide Belarus with preferential terms, and we also agreed with the $5 billion estimate of Beltransgaz," Miller said.

Source:

http://en.rian.ru/world/20061226/57859690.html