BELARUS NEWS AND ANALYSIS

DATE:

18/05/2007

Belarus Gas Transport System Delayed

2007 The Associated Press

MINSK, Belarus - Russia's state-controlled gas monopoly OAO Gazprom purchased a 50-percent stake in Belarus' gas transport system Friday for $2.5 billion, Gazprom said.

The Beltransgaz network is a key conduit for Russian gas exports to Western European countries. A price dispute over the price paid by Belarus for its gas imports last year raised fears of a Russian cutoff that could affect European customers _ as happened in a similar dispute with Ukraine in early 2006.

The dispute with Belarus was resolved in a last-minute deal that included Gazprom being allowed to buy the stake in OAO Beltransgaz.

Russia has long been seeking the share in Beltransgaz and securing it was seen as a major Russian goal in the dispute over the gas price hike.

Under the gas price agreement, Belarus pays $100 per 1,000 cubic meters in 2007 _ slightly more than double the $47 it paid in 2006.

Source:

http://www.chron.com/disp/story.mpl/ap/fn/4816278.html