BELARUS NEWS AND ANALYSIS

DATE:

20/12/2006

Russia offers Belarus cheaper gas in proposed JV

MINSK, Dec 20 (Reuters) - Russia may cut its proposed 2007 gas price for Belarus if Russia's gas monopoly Gazprom gets a share in Belarus' state gas pipeline company, Russian Ambassador Alexander Surikov said on Wednesday.

"Russia will cut gas price for Belarus to $140 per 1,000 cubic metres from the earlier proposed $200 if a deal is reached with Beltransgaz," Surikov told reporters.

He added that Russia agreed Beltransgaz might be worth $3-4 billion, up from the $1 billion at which it assessed its value before. The valuation is crucial for a deal under which Gazprom would take a stake in the firm but sell Belarus cheap gas.

Surikov also said that Russia may reinstate a favourable crude export duty for Belarus if Minsk agrees to give Russia 85 percent of the income it gets from selling refined products made from Russian oil.

Source:

http://asia.news.yahoo.com/061220/3/2uod7.html