BELARUS NEWS AND ANALYSIS

DATE:

20/11/2007

Belarus may revise gas pricing formula - export

MINSK. Nov. 19. - Belarus could initiate a revision on gas pricing formula owing to plans for the construction of a nuclear power plant, Andrei Konoplyanik, the deputy general secretary of the European Energy Charter, told Interfax.

"Belarus has decided to build a nuclear power plant and, in doing so, there is a possibility of choosing between nuclear and gas powered electricity. This, naturally, could become a point of contention in the dispute with Gazprom (RTS: GAZP)," he said.

Konoplyanik said that, according to generally accepted norms, the terms of the contract on gas delivery, which includes supply to Belarus, foresees the possibility of revising the pricing formula on the initiative of one of the parties. "Belarus could initiate a revision of the gas pricing formula. However, in order to do this, the country should have appropriate grounds to do so, as well as be able to prove its necessity," he said.

"Belarus and Russia have not exhausted all avenues if they are to renew a dialogue regarding this issue," he added.

The European Energy Charter also welcomes the formation of a gas transport joint venture between Gazprom and Beltransgaz. "With the formation of a joint venture with Beltransgaz, Gazprom will be responsible for support investment and the company's development," Konoplyanik said.

Belarus signed a four-year gas supply contract with Gazprom on December 31, which includes price increases up to the European average as of 2011. In 2008, gas prices in Belarus will come to 69% of the European average.

Source:

http://www.interfax.com/3/337493/news.aspx