BELARUS NEWS AND ANALYSIS

DATE:

21/12/2006

Belarus, Russia still split on gas price

MINSK, Belarus, Dec. 21 Russia and Belarus continue to haggle over the value of Beltranshaz and the price of Russian gas supplies.

Belarusian Finance Minister Mikalay Korbut said in Minsk Wednesday that ABN Amro had valued the country's state-run gas supply and transit company at more than $5 billion, rejecting Russia's comments the company was worth $3 billion to $4 billion.

This is not true, the minimal value is more than $5 billion, he told reporters. The comments were reported by Interfax-Ukraine.

Meanwhile, Belarusian First Deputy Prime Minister Uladzimir Syamashka said the price of Russian gas will be below $130 per 1,000 cubic meters.

Interfax-Ukraine said Beltranshaz network includes 4,321 miles of pipelines, six compressor stations and 224 gas-distribution stations. It also runs two underground gas storage facilities at Asipovichskaye and Prybuhskaye and 357 miles of the Belarusian stretch of the Yamal-Europe transcontinental gas pipeline, the news agency said.

Separately, the Belarusian news agency Belapan quoted Korbut as saying officials from the two countries were holding talks on splitting in half revenue from export duty on products made from Russian crude oil.

Russia has authorized imposing export duty on Russian crude supplied to Belarusian refineries, a move that may lower Belarus's gross domestic product by 8 percent, according to Belapan.

Gazprom told Belarus that it would raise its rates from $47 per 1,000 cu. m. to $200. This is surprising because the two countries are close allies and Belarusian President Alexander Lukashenko, dubbed Europe's last dictator, has said he favors an eventual merger of his country with Russia. Gazprom has increased rates for former Soviet republics, which until recently had received gas at well below market rates. Most of the European Union, which relies on Russia for more than 25 percent of its natural gas needs, pays more than $200 per 1,000 cu. m.

Control of the pipelines, or at least a significant stake in them, would give Russian gas companies immense leverage when dealing with its clients in Europe and elsewhere.

Source:

http://www.earthtimes.org/articles/show/15153.html