BELARUS NEWS AND ANALYSIS

DATE:

01/01/2007

Gazprom signs agreement with Belarus on 2007 gas supplies

MOSCOW, Jan. 1 (Xinhua) -- Russian gas giant Gazprom and Belarus signed an agreement on gas supplies to the country in 2007in last-minute talks, averting a threatened gas cutoff to Belarus, Russian news agencies reported early Monday.

Gazprom chairman Alexei Miller was quoted as saying Belarus would buy gas at 100 U.S. dollars per 1,000 cubic meters next year, more than doubling what Belarus paid in 2006 -- 46.7 dollars per 1,000 cubic meters -- for Russian gas.

Miller was quoted by the Interfax news agency as saying that Gazprom would buy a 50 percent stake in Belarus' gas transport company Beltransgaz for 2.5 billion dollars with cash to be paid down in four years.

Gazprom and Belarus also agreed on charges for Russian gas transit through Belarus to Europe. Miller said the transit fee would rise to 1.45 dollars per 1,000 cubic meters for every 100 kilometers next year from the 0.75 dollars Gazprom paid in 2006.

Gazprom had warned it would cut gas supplies to Belarus if no deal on a price hike was reached by New Year's Day.?

Source:

http://news.xinhuanet.com/english/2007-01/01/content_5555965.htm