BELARUS NEWS AND ANALYSIS

DATE:

07/12/2006

Gazprom \'not optimistic\' on gas talks with Belarus

\"As before, we are not optimistic, unfortunately. There have been no advances so far,\" spokesman Sergei Kupriyanov told Moscow Echo radio.

Gazprom has been demanding a more than fourfold increase in the price Belarus pays for Russian gas, from the current 46.68 usd to \"around 200 dollars\" per thousand cubic meters, he said.

The demand has alarmed Belarus, whose economy is deeply dependent on cheap Russian gas, and provoked a threat from Belarussian President Alexander Lukashenko in September to \"cut all ties\" with Russia.

Kupriyanov\'s comment seemed to be at odds with an earlier statement by Russian President Vladimir Putin that Gazprom and Belarussian pipeline operator Beltransgaz would form a 50-50 joint venture -- Gazprom\'s chief condition for accepting a price lower than 200 usd.

Gazprom has long sought greater control over Belarus\'s gas pipelines, which the joint venture would bring it, but disputes over the value of Beltransgaz have thus far blocked a deal.

Kupriyanov said Gazprom was analyzing the details of a possible joint venture in the wake of an independent valuation of Beltransgaz by Dutch bank ABN Amro.

Asked whether the bilateral deadlock could lead to a crisis resembling the January \"gas war\" between Moscow and Kiev, Kupriyanov said: \"We would very much like that not to happen.\" Twenty percent of the gas Russia sells to Europe travels through Belarus.

Source:

http://www.sharewatch.com/story.php?storynumber=269254