BELARUS NEWS AND ANALYSIS

DATE:

22/05/2007

Gazprom acquires 50% of Beltransgaz

By Clare Watson

Russia's state-owned gas giant Gazprom has acquired 50% of Belarus' national gas transport system Beltransgaz for $2.5 billion, the AFP news agency has reported.

According to the publication, around 20% of the gas that Russia exports to Europe is transported through Belarus. It is hoped that the gas transport agreement will secure the supply of energy to Europe.

According to AFP, the agreement between the Russian state-owned company and Belarus signifies the end of an ongoing disagreement between the two regions. The dispute caused Gazprom to significantly increase the gas prices it charges Belarus.

According to AFP, as part of the gas transport deal, Belarus is now paying $100 per 1,000 cubic meters of gas; significantly above the previously subsidized price of $45 per 1,000 cubic meters. Russia is also paying more to transport gas through Belarus.

The deal appeared to be in jeopardy prior to the signing of the agreement as Gazprom threatened to postpone the proceedings until June 1, 2007.

According to industry observers, the threat simply emphasized the extent to which Europe relies on Russia for its energy supplies. The Kremlin has previously been accused of using Russia's rich gas and oil supplies as a tool for achieving its political aims.

Source:

http://www.energy-business-review.com/article_news.asp?guid=261410D5-4037-40E6-BF71-DD51F3383922

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