BELARUS NEWS AND ANALYSIS

DATE:

04/01/2007

Gas price rise not to hit consumers: Belarus

MINSK: Belarussian consumers will be spared sharp price increases for their gas and electricity, Belarus Deputy Prime Minister Vladimir Semashko promised on Tuesday, two days after his country agreed to a new gas supply deal with Russia that has doubled the cost of imports.

"The increase in the price of Russia gas for Belarus will not lead to higher prices for domestic services for the population," Vladimir Semashko said at a press conference. He said the price increases would be "absorbed by companies", who would face a new gas price of 150-153 dollars per 1,000 cubic metres this year from 75.4 dollars in 2006.

The price of electricity for business clients would rise by 54 per cent and the price of heating fuel by 55 per cent. "It's a tough test for a whole sector of the economy," added Semashko, who stressed however that the government's social and economic spending programmes for this year would not be disrupted.

Under the terms of a gas deal struck late on December 31, Belarus agreed to pay 100 dollars per 1,000 cubic metres of gas from Russia, more than double the previous price of 45 dollars. The country also agreed to sell 50 per cent of state pipeline operator Beltransgaz as part of the deal.

Russia had threatened to cut its supplies to Belarus on January 1 unless the country agreed to a new supply contract with higher prices, while Belarus had threatened to disrupt Russian exports to western Europe which pass through its territory.

Source:

http://www.thenews.com.pk/daily_detail.asp?id=37602

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