BELARUS NEWS AND ANALYSIS

DATE:

06/07/2007

Russian finance min. to propose granting Belarus $1.5 bln loan

MOSCOW, July 6 (RIA Novosti) - Russian Finance Minister Alexei Kudrin said Friday his ministry would submit to the government a $1.5 bln loan proposal for Belarus later in July.

Kudrin denied allegations that Russia had received a request to increase the loan to $2 billion.

"We have not received any other proposals," the finance minister said. "We were [initially] requested to grant $1.5 billion."

Late in June Russian Prime Minister Mikhail Fradkov said Russia would consider issuing a loan to Belarus for gas purchases as part of a program to maintain market relations in energy supplies.

Russia increased its gas price for Belarus from $47 to $100 per 1,000 cubic meters from the start of 2007. However, with Minsk paying almost half the price for gas ($55 per 1,000 cubic meters), the Belarusian debt had climbed to $400 million by late May.

Source:

http://en.rian.ru/business/20070706/68494217.html