BELARUS NEWS AND ANALYSIS

DATE:

29/12/2006

Belarus will not allow Russian gas transit to Europe - prime minister

(Updates with further PM comments, background)

LONDON (AFX) - Belarus will not allow Russian natural gas to transit through its territory to Europe if there is no agreement with Moscow on import prices, Belarussian Prime Minister Sergei Sidorsky said.

"If the Russian monopolist is going to be unconstructive in negotiations, then naturally there will be no transit contract from January 1," Sidorsky said in comments broadcast on state television.

"Since Gazprom will not have a contract for transit, we cannot provide that service. We cannot pump gas through Belarus without a contract," Sidorsky said.

Russian state gas monopoly Gazprom has threatened to cut natural gas supplies to Belarus from New Year's Day unless the country accepts a higher price for imports.

Around 5 pct of all EU gas supplies pass through Belarus from Russia.

Russian media reported earlier that Sidorsky and Russian Prime Minister Mikhail Fradkov spoke on the phone, as officials from both sides continued talks in Moscow.

"The conditions for supplying Russian gas to Belarus have been set and will not be changed," Interfax quoted a Russian government official as saying after the talks.

Belarus currently pays Gazprom 46.68 usd per 1,000 cubic metres of gas.

Gazprom originally demanded an increase to 200 usd , which is closer to western European prices, unless Belarus agreed to sell 50 pct of its domestic pipeline operator Beltransgaz.

Source:

http://www.iii.co.uk/news/?type=afxnews&articleid=5914166&subject=economic&action=article