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Kabiakou Failed To Get Discount On Gas Prices

Kabiakou Failed To Get Discount On Gas Prices
PHOTO: RIA NOVOSTI

Prime Ministers of Russia and Belarus Dmitry Medvedev and Andrei Kabiakou failed to resolve the gas price and oil supply issues in Moscow on July 12.

As the press service of the Russian government informs, Russia and Belarus have agreed on in-depth consultations with members of the government and business executives on cooperation in the energy sector, tut.by writes.

"Following the talks, the prime ministers of Russia and Belarus Dmitry Medvedev and Andrei Kabiakou exchanged their views on the current state of Russian-Belarusian relations, including cooperation in the energy sector. The sides agreed to hold in-depth consultations with members of both governments and corporate executives,” – the statement says.

According to BelTA, citing a source in the Belarusian delegation, the Prime Ministers of Belarus and Russia assigned the Vice Premiers to work out the issues in the energy sector.

“The prime minister assigned the Deputy Prime Ministers to work out solutions to the problems in the relations between Belarus and Russia in the energy sphere cooperation in the near future,” – the news agency says.

Earlier, Russian Prime Minister Dmitry Medvedev suggested his Belarusian colleague “not to lead the situation with energy to nowhere.”

“These are the questions that, as “we know from the experience of previous years, mustn’t be ignored, otherwise it is very hard to find solutions, even allowing for the very high level of cooperation and partnership. There are issues on which it is necessary to negotiate, without creating long-term problems, not leading the situation into a dead end. Let's talk about it,” – Medvedev said at a meeting with Kabiakou in Moscow on July 12.

In turn, the Prime Minister of Belarus assured that Minsk configured constructively to find a solution.

The oil and gas conflict between Belarus and Russia has broken out this year. In connection with the global drop in energy prices Minsk considers 73 dollars per 1 thousand cubic meters for the Russian gas supplied to Belarus to be the fair price. Now the price of gas for Belarus is 132 dollars per 1,000 cubic meters. Russia wants Belarus to comply with the current contract – according to recent data, the debt of the Belarusian side for the natural gas supply has amounted $ 200 million this year. In April the Belarusian subsidiary of Gazprom addressed to the International Arbitration Court at the Belarusian Chamber of Commerce with a claim to the Belarusian gas supplying organizations in connection with the debt on the part of regional gas companies for the delivered natural gas.

The reduction of oil supplies to Belarus to 2.25 million tons in the third quarter of 2016 was connected to the gas issue. Russian Deputy Prime Minister Arkady Dvorkovich says that Russia has decided to cut oil supplies to Belarus due to the underpayments for gas supplies. Minsk does not agree with this position and offers not to link the gas issues with the volume of oil deliveries.

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