BELARUS NEWS AND ANALYSIS

DATE:

07/12/2007

Russia will not change gas price formula for Belarus - minister

BUDAPEST, December 7 (RIA Novosti) - Russia will not review a natural gas price formula for Belarus as requested by the ex-Soviet republic, a deputy industry and energy minister said on Friday.

"This is not entirely fair as we agreed on the present formula after long and difficult talks," Ivan Matyorov said, adding that there is an agreement between Russia and Belarus stipulating the gas price formula.

In December 2006, Russian energy giant Gazprom and Belarusian pipeline operator Beltransgaz signed a contract on gas transits in 2007-2011. The document envisioned the price of $100 per 1,000 cubic meters for 2007 and a formula for prices for 2008.

Gazprom wants to make the country gradually switch to EU pricing levels, which are way higher ($250 per 1,000 cu m).

Matyorov also said the exact price for 2008 has not been defined yet, but would roughly total about $125 per 1,000 cu m. He denied reports that the price could reach $160 per 1,000 cu m, a figure some media sources have cited.

Gazprom board chairman Dmitry Medvedev said Thursday the price of Russian natural gas for Belarus could reach average European levels in 2011. "The gas price for Belarus is among the lowest of CIS states, but it is due to reach the average European level in 2011," he said.

Source:

http://en.rian.ru/business/20071207/91411269.html