BELARUS NEWS AND ANALYSIS

DATE:

27/11/2006

Gazprom budgets massive price hike for Belarus - report

MOSCOW (AFX) - Russian gas monopoly Gazprom plans to quadruple the price it charges Belarus for deliveries of natural gas, the Vedomosti daily reported Monday, citing the gas company's 2007 draft budget.

Gazprom expects Belarus to pay 200 usd per 1,000 cubic meters of gas next year, up from just over 46 usd today, according to the leaked internal document.

In September, Belarussian President Alexander Lukashenko warned he would cut all ties with Russia if it followed through on a threat to quadruple prices.

Vedomosti cited a source close to Lukashenko as saying that no agreement had yet been reached between Gazprom and Minsk over a price increase.

Gazprom's 2007 draft budget is based on an average export price of 293 usd per 1,000 cubic meters of gas, Vedomosti reported, 14 pct higher than the 257 usd figure used in the 2006 budget.

An analyst quoted by the newspaper described the price hike as 'aggressive.'

Gazprom expects to sell gas on the Russian market for 49 usd per 1,000 cubic meters in 2007, a 15 pct increase on this year, the newspaper reported.

Source:

http://www.hemscott.com/news/latest-news/item.do?newsId=37754910019967