Zhaliba: This Is Not The Last Oil And Gas Aggravation Between Belarus and Russia

According to economist, the voiced results of negotiations are extremely unclear.

Russia has agreed to reduce the gas price for Belarus, the Russian Federation also restores previous volume of oil supplies to our country. In response, Belarus reduces oil transit tariff and pays back the loan for energy, which has previously not been recognized.

On October 10 Lukashenka taking a report of Deputy Prime Minister Uladzimir Semashka informed about settlement of other energy dispute with Russia.

"Yesterday I studied the report on oil and gas issues with Russia. As I understand that other battles are over and we have managed to sign a relevant document, problematic issues have been agreed upon and removed", Lukashenka said.

According to Uladzimir Semashka, Russia will restore old volumes of oil deliveries to the Belarusian side, and Belarus will abolish the decision to raise tariffs for the transit of hydrocarbons.

"The voiced results of negotiations are extremely unclear. It is said that the price will be reduced, but it has not been specified how much. Apparently, they accepted a compromise price. It will be less than 132 dollars initiated by Russia, but still higher than that Belarus insisted on", economist Barys Zhaliba told Belarusian Partisan.

According to the expert, $80 per thousand cubic meters could be a fair price for Belarus.

"But it is likely to be higher," Zhaliba says. - "But given the fact that Russia gives us installments for the debt repayment and restores oil supplies to previous levels by the end of the year the Belarusian side can still gain profit."

However, according to the economist, this is not the last oil and gas aggravation between Russia and Belarus.

"Everyone has its own economic interests, but there must be some sort of communication standards, diplomacy not to make scandals public or not to cut off gas in February, or increase tariffs for transit by 50%, and then cancel them a week later. Here is our "union state" that sparks all the time ", Zhaliba says.

It will be recalled that oil and gas dispute arose between Russia and Belarus in 2016. Due to the global drop in energy prices Minsk considers $73 per thousand cubic meters (now the price for Belarus is $132 per) a fair price for Russian gas to Belarus. Deputy Prime Minister Arkady Dvorkovich made it clear that a discount on gas for Belarus " is out of question." The gas issue, as well as debt in the amount of $300 million, is linked with oil supply reduction to Belarus by 5.25 million tons in the second half, which has cost Belarus 0.3% of GDP.