BELARUS NEWS AND ANALYSIS

DATE:

08/11/2007

Belarus, Ukraine start gas price talks with Gazprom

MOSCOW, Nov 8 (Reuters) - Russian gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research) said on Thursday it had held talks with its key transit partners, Belarus and Ukraine, over 2008 gas prices, but reached no immediate agreements.

Analysts and energy traders watch carefully for any signs of disagreement between Moscow, Minsk and Kiev over gas supplies, as previous pricing disputes have led to disruptions of Russian gas supplies to Europe.

Gazprom, the world's largest gas producer, supplies Europe with a quarter of its gas needs, with some 80 percent going via the territory of Ukraine and another 20 percent via Belarus.

Gazprom said in a statement its head, Alexei Miller, and Ukrainian Energy Minister Yuri Boiko discussed prices for 2008-2011.

The two men will meet again next week. Boiko has previously said he hopes for an agreement this week.

Gazprom insists it will know prices for Ukraine only after it reaches a gas import deal with Turkmenistan, which is also seeking to raise prices in 2008.

Ukraine currently pays $130 per 1,000 cubic metres compared with an average of $250, which Gazprom charges in Europe. The Russian firm says it hopes to bring prices to "market levels" for Ukraine by 2011.

Russian President Vladimir Putin said last month Moscow would raise gas prices to Ukraine softly in order not to damage its former Soviet neighbour's economy.

Gazprom said Miller also met Belarussian First Deputy Prime Minister Vladimir Semashko and the two sides confirmed they would stick to an earlier deal, under which gas prices for Belarus change together with global energy prices but are adjusted by a number of discounts.

Belarus currently pays $100 per 1,000 cubic metres.

Gazprom also said Semashko offered Gazprom the opportunity to buy into Belarussian power generation and fertiliser firms, but did not elaborate. (Reporting by Dmitry Zhdannikov and Tanya Mosolova; editing by James Jukwey)

Source:

http://uk.reuters.com/article/oilRpt/idUKL0889012120071108

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