BELARUS NEWS AND ANALYSIS

DATE:

03/01/2007

Belarussian official promises no shock for domestic gas consumers

The new Russian gas deal will inevitably raise the prices of energy for Belarussian consumers but the hikes will not come as a shock, First Deputy Prime Minister Vladimir Semashko said on Tuesday.

Gas prices on Belarussian end users will increase from 75.4 U.S. dollars to 150-153 dollars, while electricity charges will grow by 54 percent and heating charges by 55 percent, Semashko said in Minsk a day after Belarus agreed with Russia on a price hike for gas supplies in 2007, Russian news agencies reported.

Prices for households will remain heavily subsidized, rising a mere 5 to 6 dollars on average, he said.

Under the deal reached minutes before New Year's Day, Belarus would buy gas for 100 dollars per 1,000 cubic meters in 2007 for Russian gas, a doubling of the price it paid last year.

Semashko also made an offer to Russia on sharing revenues Belarus gets by re-exporting to Europe refined oil products made from Russian crude oil in exchange for Moscow reversing its decision to impose export duties on crude oil supplied to Belarus.

"Belarus is ready to share with Russia half of its profits from the export of refined oil products to encourage Russia to lift duties on crude (supplied to Belarussian refineries)," Semashko was quoted by the RIA Novosti news agency as saying.

An arrangement could be reached by mid-January, he said.

Source:

http://english.people.com.cn/200701/03/eng20070103_337865.html