BELARUS NEWS AND ANALYSIS

DATE:

31/12/2006

Belarussian PM announces to make deal with Gazprom on gas price in 2007

MOSCOW, Dec. 30 (Xinhua) -- Belarussian first deputy prime minister said on Saturday Belarus and Russian gas giant Gazprom have reached an agreement to sell gas to Belarus at 100 U.S. dollars per 1,000 cubic meters from Jan. 1, 2007, but Gazprom did not confirm the statement.

According to the Prime Minister Vladimir Semashko who told a briefing in Minsk on Saturday evening, Belarus and Gazprom have also agreed on the charge for Russian gas transit through Belarus to Europe, raising it from 0.75 dollars to 1.65 dollars per 1,000 cubic meters for every 100 km, the Interfax news agency reported.

"Another essential point that has been agreed is payment for shares in (Belarussian gas transport company) Beltransgaz in cash -- immediately or in installments for no more than a year, but with interest," Semashko said.

Gazprom would acquire a 50 percent stake in Beltransgaz and pay2.5 billion dollars for it on the basis of the company's highest valuation of 5 billion dollars, which has been recognized by Gazprom, Semashko said.

But the prices for gas imports into Belarus in 2008-2010 have not been agreed upon yet, Semashko said.

However, Gazprom spokesman Sergei Kupriyanov denied the agreement.

"We consider it premature to comment on intermediary results (of talks) and we point out that we are holding negotiations on a five-year contract," Kupriyanov said.

"The figures voiced by Mr. Semashko at the news conference are his point of view and the position of the Belarussian side at the negotiations but by no means any real agreements with Gazprom," he said.

Belarus is buying gas from Russia at 46.7 dollars per 1,000 cubic meters. The current contract expires on Dec. 31.

Gazprom is demanding Belarus pay 105 dollars per 1,000 cubic meters next year, with 75 dollars in cash and 30 dollars in shares in Beltransgaz.

The company announced on Friday that it is not going to backtrack on the terms made earlier to Belarus for gas supplies.

Related:

Gazprom not to export gas to Belarus before contract signed

MOSCOW, Dec. 30 (Xinhua) -- Russian gas giant Gazprom will not export gas to Belarus in 2007 before a contract is signed and it was launching inspections to stop Belarus taking gas from a transit pipeline, Gazprom spokesman Sergei Kupriyanov told a briefing here on Saturday.

"We cannot supply any gas without a contract, and so currently our inspectors are leaving for facilities at the Yamal-Europe gas pipeline in order to monitor the state of the junctures (between this pipeline and) the networks of Beltransgaz," Kupriyanov was quoted by the Interfax news agency as saying.

"We are also inviting independent international experts to control the volumes of gas passing through the Yamal-Europe pipeline across Belarussian territory" through which the company exports gas to Europe, Kupriyanov said.

"The way the negotiations are proceeding is making us get ready for critical developments," he said.

Belarus is buying gas from Russia at 46.7 dollars per 1,000 cubic meters. The current contract expires on Dec. 31.

Gazprom is demanding Belarus pay 105 dollars per 1,000 cubic meters next year, with 75 dollars in cash and 30 dollars in shares in the country's gas transport company Beltransgaz.

Gazprom Deputy CEO and head of its export arm, Gazprom export, said on Friday that Belarussian officials have threatening to interrupt the transit of Russian gas through Belarussian territory, more than 90 percent of which (flows through) the Yamal-Europe pipeline, which belongs to Gazprom.

Ministry: Belarus preparing for gas switching off by Gazprom

MOSCOW, Dec. 30 (Xinhua) -- Belarus is reorganizing its energy supply system in getting ready for a possible decision by Russian gas giant Gazprom to halt gas exports to Belarus from Monday, the Belarussian Energy Ministry said on Saturday.

"We still hope for a positive outcome of the gas negotiations, but the Belarussian energy system has already started technical preparations for the gas supply being switched off," a ministry spokesman was quoted by the Interfax news agency as saying.

He said one of the preparatory measures was to substitute fuel oil for gas as fuel for thermal power plants.

Earlier on Saturday, Gazprom ruled out the possibility of gas exports to Belarus in 2007 before a contract is signed and announced it was launching inspections to stop Belarus siphoning off gas from a transit pipeline.

Belarus is buying gas from Russia at 46.7 dollars per 1,000 cubic meters. The current contract expires on Dec. 31.

Gazprom is demanding Belarus pay 105 dollars per 1,000 cubic meters next year, with 75 dollars in cash and 30 dollars in shares in the country's gas transport company Beltransgaz.

No progress has been made in the gas talks between the two sides yet.

"The offer we have made is very comfortable. It is the best in the Commonwealth of Independent States (CIS), and we don't quite understand why we should backtrack on it. There are no reasons to further improve this offer, either," Gazprom spokesman Sergei Kupriyanov said on Vesti TV program.

Source:

http://news.xinhuanet.com/english/2006-12/31/content_5551299.htm

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