“Gasprom” to Halt Gas Supplies to Belarus :: Charter'97 :: News

“Gasprom” intends to give up the plans of supplying gas to Belarus, said on October 25, according to the Russian media reports, deputy chairman of the “Gasprom’s” board Alexander Ryazanov during the opening of the complex on the manufacture of liquefied natural gas in Vyborg (Leningrad region). “The results of our recent negotiations are quite frustrating. Belarusians not only don’t pay, but even use extra volumes of gas. Over 9 months they utilized 1,5bln cubic meters of gas,” – said Ryazanov.

According to him, in view of that “Gasprom” had to “take away gas from the Russian consumers, for whom its amount is limited”. At the same time, the company’s representatives reported that “Gasprom” would assist Belarus in finding independent suppliers. “It is more profitable to us to sell gas to Russia, taking into account its transportation, and we will help the Belarusian side to locate independent exporters, such as “Itera”, which may sell gas at free market cost,” – pinpointed Ryazanov. At the same time, he noted that the minimal size of the free price for Belarus constitutes $35-36 per 1thsd cubic meters of gas, rather than $24 as is the case presently.
The talks between Ryazanov and the Minister of energy of Belarus Vladimir Semashko and director general of “Beltransgas” Petr Petuh were held on October 22. In course of the meeting, the sides noted that the rates, at which the natural gas is being pumped to Belarus, significantly exceed the coordinated consignment volumes, established at the level of 10,2bln cubic meters a year. “Gasprom” will fulfill its commitments by mid-November 2002. Meantime, the payment by real money for the gas supplied only amounts to 8,3%. At the same time, Ryazanov pointed out that delays with the shipment of the Belarusian commodity as barter payment for gas, lower even more the poor profitability of the natural gas sales to Belarus.