BELARUS NEWS AND ANALYSIS

DATE:

12.28.2005, 04:27 AM

Gazprom signs 2006 gas supply deal with Belarus' Beltransgaz; price unchanged

MINSK (AFX) - Russia's Gazprom signed a contract yesterday with Beltransgaz, Belarus' state-owned gas transport company, concerning the supply of natural gas to Belarus and gas transit via the country in 2006, BelaPAN news service reported.

Under the deal, Belarus will buy 21 bln cubic meters of gas from Gazprom in 2006 at 46.68 usd for 1,000 cubic meters.

Gazprom told BelaPAN 1.5 bln cubic meters of it is subject to technical factors.

Under the deal, Belarus will collect 0.75 usd in transit fees per 1,000 cubic meters/100 kilometers through the Beltransgaz network and 0.46 usd for gas transported by the Yamal-Europe pipeline, said BelaPAN.

This means next year's gas price for Belarus remains unchanged from 2005. Gazprom commented on this by saying that Belarus and Russia are forming a union state where uniform economic standards should be applied, BelaPAN added.

Gazprom Deputy CEO Aleksandr Ryazanov said at yesterday's signing ceremony: 'Thus, the price is economically justified. Gazprom's policy with regard to Belarus suits the interests of the company's all shareholders -- both the state and private investors.'

Gazprom also said it obtained full ownership of the Belarus section of the Yamal-Europe pipeline and the two sides resumed talks on selling a stake in Beltransgaz to Gazprom this year, said BelaPAN.

The news comes as Gazprom is threatening to cut off deliveries to Ukraine on Jan 1 if it does not agree to an increase in the price it pays for gas. Western Europe receives nearly a fifth of its annual gas imports from Russia via Ukraine.

Russia wants to more than quadruple the price of supplies to the Ukrainian market to 220-230 usd per 1,000 cubic meters from 50 usd currently and switch to cash payments from the barter system.

Source:

http://www.forbes.com/markets/feeds/afx/2005/12/28/afx2416761.html