BELARUS NEWS AND ANALYSIS

DATE:

25/12/2006

Russia cuts drawn-out subsidizing of ‘IS countries - Gazprom

MOSCOW, December 25 (Itar-Tass) - Russia has been for several years defending its economic interests in relation to other CIS countries without confrontation, but firmly and consistently, a Gazprom's high-ranking official told Itar-Tass on Monday.

At present, Gazprom "stops long and drawn-out process of subsidy assistance to other countries' economies," he said.

"After Vladimir Putin came to power, Russia showed logic and consistency and became to act taking into account its own national interests," he said.

"We've begun from the most difficult - Ukraine, but tackled this problem and stop subsidizing a foreign economy. Russia began to get money it should for natural resources it owns by God's will," he said.

Later Gazprom held long and difficult talks with Armenia that is Russia's strategic partner facing economic difficulties. "We've found the way-out - lower prices plus payment in assets," the official said.

"It took much effort to resolve this issue with Georgia, whose authorities preferred to turn a deaf ear on proposals Russia put forward back in March. Nevertheless, last Friday Gazprom signed contracts on gas supplies to the three Georgian companies at a price of 235 U.S. dollars per 1,000 cubic meters," he said.

The talks are on with Azerbaijan - a country that has its own energy resources. The Russian gas giant has practically reached an agreement on gas exports to Moldova on the free market conditions.

The talks with Belarus are also underway. "As Belarus is a union state (of the Russian-Belarussian union) it was proposed the most advantageous conditions - 80 U.S. dollars per 1,000 cubic meters and the payment of 50 percent by the Beltransgaz national gas company's assets," the official said pointing out that Gazprom continues to subsidize the Belarussian economy.

"But Belarussian negotiators by some uncertain reasons insist on inter-Russian gas prices. Meanwhile, there will be no export duties for Russian gas. Taking such irresponsible steps Belarus poses a threat to Russian gas exports as of January 1, 2007," he said.

"Russia by setting a fair gas export price carries itself with responsibility. The authorities are responsible for their own population that still has many-many problems to be tackled," the official said.

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=11116335&PageNum=0