BELARUS NEWS AND ANALYSIS

DATE:

28/12/2006

Russian govt upbeat about prospects for gas talks with Belarus

MOSCOW, December 28 (Itar-Tass) - The Russian Cabinet stopped short of backing Gazprom's proposal to impose duties on gas supplies to Belarus. The move would complicate the already difficult talks with Minsk, thrusting upon them extra conditions, a Cabinet source told Itar-Tass on Wednesday in comments on the Russian company's initiative.

"This shouldn't be done," the official said. In his opinion, "the issue may be considered, thoroughly prepared, and calculations may be made, but this should be done with caution."

Gazprom CEO Alexei Miller told reporters on Wednesday that he plans to request the Russian government to impose export duties on gas exported to Belarus. He said the Russian budget loses about 1.3 billion dollars in annual revenues from gas deliveries to the neighboring republic.

Gazprom believes the export duty, together with the gas price of 200 dollars per 1,000 cubic meters will bring the price to the European level of 260 dollars per 1,000 cubic meters.

But the Russian government, upbeat about the prospects for the negotiations, is confident that "common sense" will eventually prevail.

"A reasonable, timely decision will be taken despite the fact that the talks are difficult and tensions are mounting," said the source.

"I believe all will end well," he added.

He believes Russia must conduct the negotiations consistently but without setting tough conditions. "Tough doesn't quite fit as a term," said the government official.

"We are ready to settle all the problems consistently, and this won't be a show of confrontation or force. We are aware of the importance of the need to build relations with Belarus as with a good neighbor, the fraternal relations which are special." In this connection, "these relations must be built constructively," he said.

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=11123294&PageNum=0