BELARUS NEWS AND ANALYSIS

DATE:

27/12/2006

Belarus wants gas transit fee reconsidered

RBC, 27.12.2006, Moscow 14:06:23.Belarus intends to suggest to have the Russian natural gas transit fee reviewed, Vladimir Semashko, the First Deputy Prime Minister of Belarus, told journalists today. He added that the price for gas and transit fees were connected. Semashko explained that if Russia were to increase its gas price from the current $46.68 to $75 per 1,000 cubic meters, the transit rate would also go up to at least $1.3, and it would reach $1.65 if the price of gas was $110 per 1,000 cubic meters. Russia transports 744bn cubic meters of gas via Belarus annually at a transit rate of $0.75.

Semashko pointed out that Belarus would continue to insist on the gas price of $75 per 1,000 cubic meters. He added that the republic had offered Gazprom unprecedented conditions for gas transit and hoped for the company's consistency. Semashko believes that even at the current price of gas Gazprom's cost efficiency is 25 percent and could be 100-110 percent if the price increased.

Semashko expressed assurance that Gazprom would not stop gas supplies to Belarus in January, after the existing contract expired. He added that the Russian side had not notified its partner about canceling the contract.

Source:

http://www.rbcnews.com/free/20061227140623.shtml