History of Gas Conflict :: Charter'97 :: News

In April, 2002 Russia and Belarus signed an agreement according to which Gazprom was to supply gas to the country for the domestic price (fife price zone of Russian Federation) (912 rubles for 1 thousand cubic meters). Not later than in June 2003 Belarus in its turn was to guarantee creation of gas transit joint venture with Gazprom on the base of Beltransgaz. According to this agreement Russian company was to get 50% ofBeltransgaz shares. THe joint venture was not created by this term, Gazprom demanded to review the contract, and agreeing for supplies at market price (about $50 per 1,000 cubic meters).

On January 1, 2004 Gazprom stopped supplies, because the two sides failed to agree on a price of Beltransgaz (Gazprom values the company at $600 million, while Belarus values it at $5 billion), and stated publicly that the country is to be supplied by Transnafta and Itera at a price $46.68 per 1,000 cubic meters. On January 20 chairmen of Gazprom and Beltransgaz Alexei Miller and Pyotr Pyotukh failed to reach an agreement on a price of supplied gas.

On January 23 Gazprom declared interruption of all gas supplies on midnight of January 24. On January 24 after a telephone conversation of the presidents of Belarus and Russia Pyort Pyotukh sent a wire to Gazprom about a signed agreement for purchase of 950 million cubic meters of gas from Itera and Trnsnafta. Gazprom confirmed that supplies were resumed.

On January 26 at talks in Moscow between Pyotr Pyotukh and Alexsei Miller the Russian party offered a credit to Belarus. The credit was to cover the disparity between reduced and market gas prices for 2004.

On February 10 before the meeting with Belarusian prime minister Syarhei Sidorsky Mikhail Kasyanov was informed by Viktor Khristenko that Gazprom would not be able to buy 50% of Beltransgaz, as 1% is sold to its employees. In response to reminder of Mr. Sidorsky about the credit Mikhail Kasyanov said that first the contract about with Gazprom gas supplies should be signed. On February 12 Transnafta and Beltrnasgaz reached an agreement for supplies of additional 350 milliom cubic meters of gas; they were to end on February 18 without contract.

On February 16 Belarus refused to sign a contract on the subject of Russian gas transit without a contract with Gazprom for gas supplies for the year 2004.