BELARUS NEWS AND ANALYSIS

DATE:

28/08/2007

Russia's Gas to Cost $150 for Belarus Next Year

Russia's gas may cost $125/ths cu meters to $150/ths cu meters for Belarus in 2008, Interfax reported with reference to RF Ambassador to Minsk Alexander Surikov.

"The gas price will equal 67 percent of average Europe's price, which will be finally fixed in December after additional calculations related to changes in petroleum prices," the ambassador said, specifying that the winter forecast will also affect the price. "It may range from $125/ths cu meters to $150/ths cu meters," Surikov said.

Russia's government has never promised to credit the price increase for Belarus. "The budget of Russia doesn't credit commercial structures. It may grant credit to stabilize economy or credit [to cover] the cash gap of the country's budget," the ambassador explained.

According to Surikov, Russia couldn't have promised to grant the stabilization credit that is opened at low interest for long to a business company, which Beltransgaz is. "For this organization, the credit histories exist that are opened by the banks - Russian and Belarus' ones. And the banks stand ready. What for will we lend to businessmen the budget money?" the top-rank diplomat posed a rhetoric question.

But Russia may grant stabilization credit to Belarus, the ambassador went on, provided there are reasons for it. But Belarus has not the shortage of budget but its surplus, he pointed out.

The ambassador also reminded that Russia's-Belarus agreement on crude oil/petroleum expires in 2009. "Substituting for 20 million tons of crude oil after 2009, if Russia's oilmen lose interest in this market, will be extremely difficult," the diplomat warned, prompting Belarus to be as interested in making private the refineries as Russia's business is.

Source:

http://www.kommersant.com/p-11283/Gas_Belarus_/