BELARUS NEWS AND ANALYSIS

DATE:

30/12/2006

Gazprom not to change offer to Belarus on gas price

MOSCOW, Dec. 29 (Xinhua) -- Gazprom is not going to backtrack on the terms made earlier to Belarus for gas supplies, Russian gas giant Gazprom spokesman said on Friday.

"The offer we have made is very comfortable. It is the best in the Commonwealth of Independent States (CIS), and we don't quite understand why we should backtrack on it. There are no reasons to further improve this offer, either," Sergei Kupriyanov said on Vesti TV program.

Kupriyanov described as unacceptable the possibility that Belarus might tap into the gas transiting its territory toward Western Europe, through the Yamal-Europe gas pipeline.

"We definitely say that this scenario is impossible and unacceptable," he said.

If negotiations with Minsk do not yield results, this will negatively affect the Belarussian economy, Kupriyanov said. "The disruption of these talks will certainly lead to grave consequences for the Belarussian economy," he said.

Belarus is buying gas from Russia at 46.7 dollars per 1,000 cubic meters. The current contract expires on Dec. 31.

Gazprom is demanding Belarus pay 105 dollars per 1,000 cubic meters next year, with 75 dollars in cash and 30 dollars in shares in the country's gas transport company Beltransgaz. The demand is refused by Belarus at present.

MOSCOW, Dec. 29 (Xinhua) -- Belarus and Russian natural gas monopoly Gazprom accused each other of blackmail in talks on Russian gas exports, Russian news agencies reported on Friday.

"So far there has been blackmail, but, if they keep blackmailing (us), we will go into dugouts but won't give in to blackmail," Belarussian President Alexander Lukashenko was quoted by the Itar-Tass news agency as saying on Friday.

"Now that gas prices are being doubled or tripled to a level almost five times higher than Russia's domestic prices, this is not just an increase of gas prices, this is a breakdown of the alliance. We are being forced to leave the Russian market," he said.

The president described Russia's position as unconstructive.

Alexander Medvedev, Gazprom Deputy CEO and head of its export arm, Gazprom export, said that "there has been no blackmail, there isn't any, nor can there have been any."

"On the contrary, Belarussian officials have been blackmailing Gazprom and Europe by threatening to interrupt the transit of Russian gas through Belarussian territory, more than 90 percent of which (flows through) the Yamal-Europe pipeline, which belongs to Gazprom," Medvedev said.

"Belarus has been offered the most preferential terms of Russian gas deliveries in comparison with other former Soviet republics," he said. "Bearing in mind the allied relations, Gazprom offered Belarus to buy gas in 2007 at a price of 105 U.S. dollars per 1,000 cubic meters."

Belarus is buying gas from Russia at 46.7 dollars per 1,000 cubic meters. The current contract expires on Dec. 31.

Gazprom is demanding Belarus pay 105 dollars per 1,000 cubic meters next year, with 75 dollars in cash and 30 dollars in shares in the country's gas transport company Beltransgaz.

Gazprom reached agreement with Moldova on Tuesday to sell the country gas at 170 dollars per 1,000 cubic meters next year, up from the 160 dollars it is paying now. Last week, Georgia signed contracts with Gazprom for gas deliveries in 2007 at 235 dollars per 1,000 cubic meters, a doubling of the price it pays this year.

Source:

http://news.xinhuanet.com/english/2006-12/30/content_5548355.htm