BELARUS NEWS AND ANALYSIS

DATE:

05/04/2006

Belarus faces tripling of price of gas

The Associated Press

MOSCOW: The Russian gas group Gazprom called Tuesday for at least a threefold increase in gas prices for Belarus, a move that could strain relations between the two neighbors.

Belarus is the only former Soviet republic that did not face a gas price increase from Moscow last year and it is paying the rock-bottom price of about $47 per 1,000 cubic meters of natural gas.

Belarus should pay at least three times the rate it is paying now, Gazprom's deputy chairman, Alexander Ryazanov, said at an energy conference in Moscow.

"For us, raising prices for CIS countries is not a political decision," but rather reflects current economic reality, Ryazanov said on NTV television, referring to the Commonwealth of Independent States, a loose alliance of ex- Soviet republics.

Ryazanov's words echoed statements made by Gazprom officials last week that Belarus should pay European rates for Russian gas. Many analysts have interpreted the move as a bid by Moscow to acquire control over the Belarusian pipeline operator Beltransgaz, which carries Russian gas to lucrative Western markets.

Experts say the proposed price increase would cripple Belarus, because its Soviet-style command economy relies on cheap Russian gas to keep its exports competitive.

Gazprom has said Belarus has until the end of April to make its proposals.

Source:

http://www.iht.com/articles/2006/04/04/business/belarus.php