BELARUS NEWS AND ANALYSIS

DATE:

03/11/2006

Russia may triple Belarus gas tariffs in 2007

MINSK (AFX) - Belarus may have to pay 140 usd per 1,000 cubic metres for its Russian gas supplies in 2007, three times more than the current tariff, Russian ambassador to Belarus, Alexander Surikov said.

Russia has proposed to Belarus a price of 200 usd per 1,000 cubic metres, but after deducting customs duties of 30 pct (as Belarus and Russia come under a common economic region), the price it will be billed at would be 140 usd, the ambassador told a press conference.

The former Soviet republic currently pays 46.68 usd per 1,000 cubic metres for Russian gas, a very reasonable price as until now Belarus has been a loyal ally of Russia.

However, bilateral relations have been affected by Belarussian President Alexander Lukashenko's blocking of Russia's plan for a political union between the two countries, as he was reluctant to partially give up his country's sovereignty and rights to Moscow, despite Russian pressure.

At the end of September, the Belarussian president warned that if Russia doubled the price of its gas, that would lead to a possible breaking of ties with Russia.

Belarus would have significant leverage in a possible gas dispute with Moscow, as some 20 pct of exports of Russian gas destined for Europe is transported via its pipelines.

Georgia, which had its gas tariffs for 2007 doubled by Gazprom yesterday to 230 usd per 1,000 cubic metres, has accused Russia of raising its tariff for political rather than economic reasons, as there has been a bitter diplomatic row between Georgia and Russia over the past month.

Source:

http://www.hemscott.com/news/latest-news/item.do?newsId=37142877419837