BELARUS NEWS AND ANALYSIS

DATE:

06/08/2007

Gazprom: We want Beltranzgas, But Nothing Else

Gazprom does not want to acquire Belarusian enterprises other than AAT Beltransgaz (gas pipeline network), Sergei Kupriyanov, spokesman for the Russian natural gas giant, said in an interview broadcast by Russia's TV Tsentr on August 3, BelaPAN reported.

"Beltransgaz is what we really would like to get," he said. "We agreed on how we would buy half of this enterprise, agreed on how this company would operate after we got 50 percent and we so far don't have any additional new ideas."

Mr. Kupriyanov denied media speculation that Gazprom's ultimatum to Belarus to pay off its outstanding gas debt was caused by Gazprom's intention to buy stakes in other key Belarusian enterprises such as oil refineries. "One should not look for a black cat in a black room, especially if the cat is not there," he said. In this case, it was obvious that gas supplies had to be paid, he stressed. According to him, Beltranshaz was to be transformed into a joint enterprise as far back as 2003, but "this was not done and what we are talking about now is not the establishment of a joint enterprise but a direct purchase of 50 percent in Beltranshaz for a rather large amount of $2.5 billion."

Mr. Kupriyanov also noted that it was not correct of Belarusian officials to tie payments for Russian gas to the possibility of obtaining a Russian loan. Gazprom paid $625 million for a 12.5-percent stake in Beltranshaz as far back as early June and Minsk's argument that this money would come in handy later was worthless. "It was important to abide by the contract, which specified all issues for five years to come," he stressed.

Under an agreement signed on December 31, 2006, Gazprom was to acquire a 50-percent stake worth $2.5 billion in Beltranshaz by June 1, 2010. It would pay for the stake by four equal installments between 2007 and 2010.

The agreement obliged Belarus to pay $100 per 1000 cubic meters of gas instead of $46.68 but allowed it to pay 55 percent of the price in the first six months, as Minsk pledged to pay off the accumulated debt by July 23.

Belarus, which plunged into a debt of some $460 million, failed to pay it by that date, explaining that it had not received a loan that the Russian government had allegedly promised to give for this purpose.

Source:

http://www.oilandgaseurasia.com/news/p/0/news/899