BELARUS NEWS AND ANALYSIS

DATE:

28/12/2006

No progress in gas talks with Belarus - Gazprom

MOSCOW, December 28 (RIA Novosti) - Russia and Belarus failed to reach an agreement on new gas prices for Minsk at talks Thursday, the Russian energy giant's official spokesman said.

Russia and Belarus are currently involved in complex negotiations over the 2007 gas price for Minsk, which has been paying a discounted rate until now. The dispute is reminiscent of a gas spat with Ukraine early this year when Russia briefly suspended gas supplies, affecting consumers in Europe.

"No progress has been made at today's talks," Sergei Kupriyanov said, adding that consultations with the Belarusian officials, including the head of the Belarusian government-owned pipeline company, Beltransgaz, continue.

"Beltransgaz director [Dmitry] Kazakov, who is authorized to sign a contract, is currently at Gazprom [headquarters]," he said.

In the ongoing dispute between the ex-Soviet neighbors, Gazprom CEO Alexei Miller said Wednesday the state-controlled Russian natural gas monopoly will cutoff supplies to Belarus January 1, 2007 if no new agreement is signed by that time.

A Russian government source said following Thursday's talks that Moscow does not intend to change the Gazprom-proposed terms of contract on gas supply to Belarus.

Gazprom proposed Belarus pay $75 per 1,000 cubic meters in cash plus $30 in shares of Beltransgaz. Belarus said it was only ready to pay $75 in cash and, being a transit country, would not suffer gas shortages, sticking to the 2006 price of $46.68 per 1,000 cu m until the new contract was signed.

Belarus, which is building a Union State with Russia, currently pays a discounted rate of $46.68 per 1,000 cu m and charges Russia a transit rate of $0.75.

But Gazprom said the statements were tantamount to an open declaration of plans to siphon off Russian gas transited to Europe, adding the company had proposed the most beneficial terms among the former Soviet allies to Minsk.

Gazprom pledged earlier Thursday to ensure uninterrupted gas supplies in full to Europe via the Yamal-Europe pipeline, owned by Gazprom and operated by Beltrasgaz, stretches across Belarus.

Source:

http://en.rian.ru/world/20061228/58055463.html

Google