BELARUS NEWS AND ANALYSIS

DATE:

06/06/2007

Gazprom acquires 12.5% stake in Belarus pipeline

MINSK, June 6 (RIA Novosti) - Russian energy giant Gazprom [RTS: GAZP] has acquired a 12.5% stake in Beltransgaz, the first of four installments under a deal with Belarus' gas pipeline operator, the Belta news agency said Wednesday.

"Today, a 12.5% stake in Beltransgaz has been transferred into Gazprom's ownership," it said citing the government property management agency.

Gazprom Monday paid $625 million to Belarus for the first 12.5% stake in Beltransgaz ahead of schedule, which will go to the republican national development fund.

The May 18 deal to buy 50% in Beltransgaz for $2.5 million in four equal installments by 2010 is expected to tighten Gazprom's operational control of the Yamal-Europe pipeline, thus far its main export route to Central Europe running through Belarus.

The Russian energy giant said earlier that the Belarusian pipeline was worth $3.3 billion, well below the $5 billion valuation Belarus had long insisted on.

The final deal was largely concluded late last year as Russia and Belarus became embroiled in an oil and gas dispute after Gazprom, keen to bring former Soviet republics in line with market rates for energy supplies, doubled the gas price to $100 per 1,000 cubic meters.

Source:

http://en.rian.ru/russia/20070606/66789093.html