BELARUS NEWS AND ANALYSIS

DATE:

18/05/2007

Russia purchases 50-percent stake in Belarus gas transport system signed

The Associated Press

MINSK, Belarus: Russia's state-controlled gas monopoly OAO Gazprom purchased a 50-percent stake in Belarus' gas transport system Friday for US$2.5 billion (?1.85 billion), Gazprom said.

The Beltransgaz network is a key conduit for Russian gas exports to Western European countries. A price dispute over the price paid by Belarus for its gas imports last year raised fears of a Russian cutoff that could affect European customers - as happened in a similar dispute with Ukraine in early 2006.

The dispute with Belarus was resolved in a last-minute deal that included Gazprom being allowed to buy the stake in OAO Beltransgaz.

Russia has long been seeking the share in Beltransgaz and securing it was seen as a major Russian goal in the dispute over the gas price hike.

Under the gas price agreement, Belarus pays US$100 (?74) per 1,000 cubic meters in 2007 - slightly more than double the US$47 (?35) it paid in 2006.

Source:

http://www.iht.com/articles/ap/2007/05/18/business/EU-FIN-Belarus-Russia-Gas.php

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