Belarus Demands Gas Price Revision

Belarus demands to revise prices for gas supplied from Russia, Interfax reported with reference to Belarus First Deputy Prime Minister Vladimir Semashko.

Semashko said that, when sealing the previous agreement, the parties were governed by Russia's forecast for decline in crude oil prices. But given the global increase in energy cost, Belarus may face the surge in gas prices. Therefore, the proposal of Belarus is to ink a supplementary agreement to the agreement on gas pricing.

Of all CIS members, the price for Belarus is calculated under "the most comfortable formula," people in Gazprom pointed out.

Nowadays, Russia is supplying gas to Belarus at $127.9/ths cu meters. The price was $119/ths cu meters early this year. Under the agreement of December 31, 2007, the gas price for Belarus is tied to the prices in Europe.

Gazprom BOD sanctioned in April the increase in gas prices for CIS and Baltic States up to the Europe's level. The 2009 prices are forecasted to step up to $300/ths cu meters.

Gazprom has been negotiating with CIS partners about the growth in gas prices since 2006. Ukraine, for instance, pays $179.5/ths cu meters in 2008.



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