BELARUS NEWS AND ANALYSIS

DATE:

27/06/2008

Beltransgaz issue not to be tied to gas price for Belarus

MOSCOW, June 27 (Itar-Tass) - The settlement of the Beltransgaz issue will not be tied to the price of gas for Belarus, a source in the Russian government assured ahead of the meeting of the Council of Ministers of the Russia-Belarus Union State in Moscow on Friday.

"We're hoping to find a constructive solution regarding Beltransgaz in the course of negotiations, and it cannot be tied with the gas price for Belarus," the official said.

He explained that "Russia has concerns with respect to this Belarussian company, which is a joint enterprise at present," reminding that Belarus had passed a decision to increase deductions to the republic's innovative fund.

The source underlined that it was an additional financial burden.

"We agreed that there would be no additional financial burdens, and that's what we call these deductions," he stated.

Earlier, the norm of deductions stood at 9 percent, and now Belarus has increased it to 18 percent.

"They then offered assurances that they would bring it back to 9 percent, but the situation had not changed thus far," the official underlined.

"We fully support Gazprom's stance that financial burden on Beltransgaz should not be increased; and that it is inadmissible to revise the existing accords," he added.

At the same time, he assured that the settlement of this issue would not be tied to the price of gas supplied to Belarus, because price is calculated on the basis of market principles.

"The growth of prices is caused not by Gazprom's decision but the objective gas price hikes on world market," the government official noted.

"It's important for us that the payments for gas be effected on time and in full measure," he said.

In this connection, he remarked that Belarus has been paying the 2nd quarter gas bill at the prices of the 1st quarter.

In January through March, 1,000 cubic meters of gas supplied to Belarus cost 119.53 dollars, while in the second quarter, the price was 127.9 dollars.

"So far, they've been paying for the 2nd quarter with 1st quarter prices," the Russian official said.

He did not rule out that Belarus, in the runup to the Council of Ministers' meeting might fully pay the debt.

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=12817689&PageNum=0

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