BELARUS NEWS AND ANALYSIS

DATE:

15/12/2006

Russia, Belarus hold gas talks

Russian President Vladimir Putin and his Belarussian counterpart, Alexander Lukashenko, met in Moscow Friday to discuss the escalating trade dispute between the two countries.

Minsk accused Moscow on Thursday of violating the trade agreement between the two countries by imposing full customs duties on crude-oil exports to Belarus as of Jan. 1.

Moscow said it wants to increase that figure on natural gas exports to Belarus to around $200 per 1,000 cubic meters, while Minsk pays $46.67 per 1,000 cubic meters.

"Russia's introduction of duties on exports to Belarus as of Jan. 1 violates a number of provisions on free trade between our two countries," Alexei Popov, Belarussian foreign ministry spokesman, told Interfax.

Industry experts say Moscow is using the price increase to pressure Minsk to accept its terms in a battle for control of Beltransgaz, the pipeline network that delivers gas through Belarus to Germany, Lithuania and Poland.

Gazprom wants to enhance its influence over the pipeline network in exchange for a lower gas price.

Belarussian Foreign Minister Sergei Martynov said the recent 50-50 joint-venture deal would be signed by Jan. 1.

Lukashenko and Putin also held talks before a meeting of the Russia-Belarus Union.

"Lukashenko obviously understands that Russia is not joking this time," said Yaroslav Romanchuk, head of the Mizes Research Center, a liberal think tank in Minsk. "Lukashenko is clearly jittery, clearly lost."

Source:

http://www.upi.com/Energy/view.php?StoryID=20061215-015824-6375r