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Belarus and Russia didn’t agree: gas prising formula remains the same

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Gas price for Belarus is formed according to pricing formula, dependent on cost of oil products in Europe.

It was said after a meeting in Moscow between Gazprom CEO Aleksei Miller and first deputy prime

minister of Belarus Uladzimir Syamashka.

Belarus, like industrial Russian consumers, will reach the level of gas prices, bringing equal profit with Europe in 2011. In 2008-2010 reduction factors 0.67, 0.8, and 0.9 are applied to the European price relatively.

In 2007 gas was sold at the price USD 100 per 1,000 cubic meters, in the first quarter of 2008 – at USD 119.6, and in the second quarter – at USD 128.

As Interfax informs, special attention was given to an issue on Beltransgaz deductions (Gazprom (RTS: GAZP) owns 25 per cent now) into innovation fund of Belarus. Gazprom turned attention of the Belarusian partners that such deductions didn’t meet terms of purchasing 50 per cent of Beltransgaz stake, statement of the Russian company says.

Gazprom notes that increasing of Beltransgaz deductions into innovation fund of the republic till 19 per cent of primecost of services of the company, didn’t meet acting documents. In accordance with the protocol on questions on formation of joint Belarusian-Russian gas transmission organisation of 31 December, 2006, and in accordance with Beltransgaz stake sales contract signed between Gazprom and State Committee on Property of Belarus on 18 May 2007, the Belarusian party shouldn’t increase financial obligations of Beltransgaz. Moreover, in accordance with an agreement between the Russian government and the Belarusian government signed in March 2007, since 1 July 2007 the Belarusian party shouldn’t apply payments to economic entities with the participation of Russian capital, having a character of taxes and duties, that are not provided by tax laws of Belarus, Gazprom reminds.

A decision to create a working group on a project of electric power plant construction in Belarus was taken at the meeting. Belarus suggested Gazprom to take part in construction of generating export-oriented capacities on the territory of Byaroza State District Power Plant (Brest Region). The case is in construction of new 450-500-MW power-generating unit. The appraisal cost of the project is USD 330 million.

The delegation of the Belarusian government headed by first vice prime minister Uladzimir Syamashka has met with Gazprom leadership today. Gazprom representatives didn’t comment on the agenda.

A source of the newspaper “Vedomosti” said two main questions had been discussed at the meeting. Belarus wants to gain freezing of gas prices again. Gazprom is interested in Beltransgaz’ release from responsibility to pay special deductions into the innovation fund of the Ministry of Energy.

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