Belarus in danger of imposing gas duties by Russia

Prime ministers of Russia and Belarus will fail to agree on gas prices at a session of the union’s Council of Ministers, experts suppose.

Belarus will insist on reviewing the contract on supplies of Russian gas. What is the ground for the country’s hope for equal gas pricing with Russia and is it real?

Economist Leanid Zlotnikau says in an interview to “Zavtra Tvoey Strany” that the documents on prospects for energy supplies the Belarusian party refers to were signed by Belarus and Russia in the early 1990s.

“On the other hand, in late hours of 2006, our government signed some documents providing for a way of increasing prices to reach the level of world gas and oil prices. Russia may refer to these documents,” Leanid Zlotnikau thinks. “Belarus needs netback parity for gas to have equal competitive conditions. We have a common customs area, but we pay for gas more than the Russians (Russia’s domestic gas price is $70-80 per 1,000 cubic meters).

Leanid Zlotnikau doesn’t think the prime ministers of Russia and Belarus will agree on gas prices at the nearest session of the union’s Council of Ministers scheduled for October 15.

“Contracts on phased increase in energy prices had been signed before political perturbations began. So, one shouldn’t blame only deterioration in the relations between the Belarusian president and the Russian leadership, but under present circumstances, Russia won’t depart from the policy it has been crying out for the last three years,” the expert supposes. “What is more, we are in danger of imposing duties on Russian gas supplies to Belarus. If the duty is about $100 per 1,000 cubic meters, it will mean that Belarus will lose $2 billion per year more.”