BELARUS NEWS AND ANALYSIS

DATE:

30/12/2006

Gazprom issues stern warning to Belarus on gas contract

MOSCOW, December 30 (RIA Novosti) - With the deadline fast approaching, Belarus's chief negotiator for talks with Gazprom [RTS: GAZP] has not arrived in Moscow yet, a spokesman for Russia's natural gas giant said Saturday.

"The current contract for natural gas deliveries to Belarus expires in a little more than 24 hours, and there can be no more delays," Sergei Kupriyanov said.

Gazprom said earlier today it does not expect progress at gas talks with Belarus until a high-level Belarusian official comes to Moscow.

"The negotiations are ongoing. But no progress can be expected until the chief Belarusian negotiator, First Deputy Prime Minister Vladimir Semashko, arrives in Moscow," Kupriyanov said.

But a top executive at Belarusian government-owned pipeline company Beltransgaz said Vladimir Semashko is ready to fly to Moscow later today.

A senior Gazprom official dismissed Friday Belarus's allegations that the gas monopoly was blackmailing Minsk in a dispute over natural gas prices in 2007.

"There is no blackmail whatsoever," said Alexander Medvedev, head of Gazprom's export arm.

Medvedev said it is Belarus that is blackmailing Gazprom and Europe, threatening to disrupt Russian natural gas transit via its territory, 90% of which is pumped through Russia's Yamal-Europe pipeline.

Belarus's President Alexander Lukashenko said earlier Friday that his country will not yield to Gazprom's pressure.

In the ongoing dispute between the two ex-Soviet neighbors, Gazprom CEO Alexei Miller said Wednesday the state-controlled Russian natural gas monopoly will cut off supplies to Belarus January 1 if a new agreement is not signed by that time.

Gazprom has proposed that Belarus pay $75 per 1,000 cubic meters in cash, plus $30 in shares of Beltransgaz.

But Belarusian officials called Gazprom's move a provocation and said Belarus will keep paying the 2006 price of $46.68 per 1,000 cubic meters until a new contract is signed.

Russia responded by saying the statement represented an open declaration of the intent to siphon off Europe-bound gas and warned Lithuania, Poland and Germany of possible supply shortages in the unfolding situation.

Medvedev said Belarus was offered the most favorable gas delivery terms, compared with other ex-Soviet republics.

The Russian gas monopoly currently charges Armenia $110 per 1,000 cu m, while Ukraine pays $130 for Central Asian gas and Moldova $160. Gazprom has recently signed contracts for the supply of 1.1 billion cu m of gas to Georgia in 2007 at $235 per 1,000 cu m.

The dispute with Belarus is reminiscent of a gas spat with Ukraine early this year when Russia briefly suspended gas supplies, affecting consumers in Europe.

Source:

http://en.rian.ru/russia/20061230/58185556.html

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