Belarusian officials made Gazprom laugh
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8:41, — Economics
Belarus has worked out the budget 2009 based on Russian gas price of 140 dollars per 1,000 cu m and hopes Gazprom will approve this price. Vice-premier Andrei Kabyakou said it.
But Gazprom thinks benefits for Belarus shouldn’t exceed 20 per cent of the European price, which now goes beyond USD 310-320. Besides, Gazprom will buy Asian gas in 2009 at USD 210 per 1,000 cu m, Russian “Nezavisimaya Gazeta” runs.
Minsk counts that Russian gas price will amount to USD 140 in 2009, vice premier Andrei Kabyakou said, answering the question of Interfax. According to him, the Belarusian budget 2009 is being worked out on the basis of this price. “Initially, this price is agreed upon the contract signed in 2006. On the assumption of this contract we are negotiating with Russian on gas price for 2009. We took into account this figure – USD 140,” Kabyakou said.
The Belarusian vice premier also explained that “the price mentioned is our suggestion.” “We have raised all outstanding problem in due time, and our colleagues don’t refuse to discuss them,” Kabyakou said answering the question on possible gas price adjustment. “The process of negotiations has never been stopped, moreover, a gas transporting joint venture was created by our side and Gazprom. We hope we will soon see the outcome of the negotiations,” the vice premier noted.
Last Wednesday Gazprom Board of Directors approved officially a completely different approach to gas price setting for Belarus. “On December 31, 2006 Gazprom and Beltransgaz signed the Gas Supply and Transit Contract for 2007 through 2011. The contract fixed the pricing formula starting from January 1, 2008 (which is in line with the price formula for Russian gas supply to Europe) as well as the discounts to the market price for 2008-2010 (0.67, 0.8 and 0.9 respectively),” the Gazprom press center said. Current gas supplies prices for Baltic countries and Poland amount to USD 280-320 per 1,000 cu m. It means that even taking into account 20-per cent benefit, Russian gas price for Belarus can exceed USD 200 in 2009.
Another price floor for Gazprom is prices of Central Asia gas they buy. In March state-run companies of Kazakhstan, Uzbekistan and Turkmenistan agreed with Gazprom on increase in gas prices up to the European level since 2009. Presenting the financial report early April in London, LUKOIL vice president Laonid Fedun said that according to him, Asia gas prices would reach USD 210. LUKIOL recovers gas in Uzbekistan and sells it to Gazprom at the same costs as state-owned Uzbekneftegaz does. So, buying gas at USD 210 and selling it to Minsk at less than 210 is an example of anti-economic policy, Gazprom will hardly accept.
Minsk bought Russian gas at USD 119 per 1,000 cu m in the first quarter of 2008. The price for the second quarter of the year is probably USD 128. But Vasily Khrol, deputy secretary of State of the Belarus-Russia “union state,” said in early April Russian gas price would be able to exceed 200 dollars. “According to the pricing formula, the next gas price may exceed 200 dollars” Vasily Khrol said.
Belarus bought 21.1 billion cubic meters of Russian gas in 2007. The supply plan for 2008 is 21.6 billion cubic meters.
