BELARUS NEWS AND ANALYSIS

DATE:

05/02/2006

Gazprom Hints at Face-Off With Belarus

MOSCOW (AP) - An official at Russia's state-controlled gas monopoly hinted that a New Year face-off over gas prices with Ukraine, which led to a temporary supply drop to Europe, could be repeated if neighboring Belarus does not agree this year to a threefold price hike.

Pro-Moscow Belarus is the only ex-Soviet republic relying on Russian gas that did not get a gas price hike from Moscow last year. It now pays the rock-bottom price of roughly US$47 (euro38) per 1,000 cubic meters.

Gazprom is asking for a minimum hike to US$145 (euro116) per thousand cubic meters of natural gas for 2007, said Sergei Kuprianov, OAO Gazprom's top spokesman.

"I wouldn't want to celebrate the New Year in a car or in the office," Kuprianov said on the Ekho Moskvy radio station, referring to the spat with Ukraine that escalated through December and ended with supplies being cut to Ukraine on Jan. 1.

"The reason we are starting the talks now (with Belarus) is so that we can complete them in good time," Kuprianov said.

Many analysts have interpreted the move as a bid by Moscow to acquire control over Belarus' pipeline operator, which transports Russian gas to lucrative European markets.

When Gazprom cut off gas deliveries to Ukraine, exports to Europe that passed through a pipeline transiting Ukrainian territory were also disrupted, sparking concerns about Russia's reliability as an energy supplier.

Source:

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20060502&ID=5686502

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