BELARUS NEWS AND ANALYSIS

DATE:

31/12/2006

Belarus ties gas deal with Russia to unrelated problems - Gazprom

MOSCOW, December 31 (RIA Novosti) - Belarusian negotiators at current talks with Gazprom [RTS:GAZP] on Russian gas supplies to the ex-Soviet republic are attempting to raise issues that are not related to the gas sphere, a Gazprom spokesman said Sunday.

"The talks are still continuing in a very intense atmosphere," Sergei Kupriyanov said in an interview with Russia's Channel One television.

"We have just received information that our Belarusian colleagues are trying to tie gas supplies issues with other unrelated problems in bilateral relations," the spokesman said.

The spokesman for Russia's gas monopoly urged Belarusian negotiators to avoid comparing gas prices for Belarus with Russia's domestic prices.

"There is no sense to do so," Kupriyanov said. "They [the prices] should be tied to prices for oil and gas consumers in Europe."

Gazprom has proposed that Belarus pay $75 per 1,000 cubic meters in cash, plus $30 in shares of Beltransgaz, the former Soviet republic's gas pipeline operator, while it currently charges European customers over $250. The price would increase annually and reach the European level (and Russia's future domestic level), minus the transit cost and export duties, by 2011.

Kupriyanov reiterated that if the sides fail to reach an agreement soon, Gazprom will start preparation to cut off supplies of natural gas to Belarus for domestic consumption by the deadline set for 10 a.m. Moscow time [7 a.m. GMT] on January 1, 2007.

"We still have six hours to finalize the deal," the official said.

"If it does not happen, we will start preparations to cut off gas supplies for Belarusian consumers and will finish it [the preparation] by 10 a.m. tomorrow," he said.

Source:

http://en.rian.ru/russia/20061231/58234295.html