Belarusian Government Demands Gas Costs Same as for Russia :: Charter'97 :: News

Raising energy supplies prices for consumers of Belarus and Russia should have taken place simultaneously. This opinion has been expressed by first vice prime minister of the Belarusian government Uladzimir Syamashka at the session of the National council on labour and social issues. He explained that Russian government had to adopt the principle of equal profitability and was driven to raising prices for energy supplies, and on the home market as well. This principle means that profits of the seller of energy is to be equal in supplies to all buyers. As we have informed, Russia increased gas prices for Belarus twofold in 2007, while it was increased averagely by 15% in Russia. By 2011 prices for Russian energy supplies at home and external markets should become equal.

At the same time, Uladzimir Syamashka believes that under certain conditions abrupt price hike for power resources in 2007 and gradual raising it to a planned level could bring about advantages for consumers in Belarus as compared to Russian ones.

As said by first vice prime minister, at the moment Gazprom has reached a dangerous threshold when in a few years because of a lack of investment to new deposits development, gas reserves could be exhausted. He noted that in 2006 gas deficit at home market of Russia reached 4.5 billion cubic metres. According to some estimations, in 2007 this deficiency would make about 10 billion cubic metres.

In order to secure energy supply to home and external markets, Russia should invest about $60 billion annually in field work, exploring and field facilities construction. For the last two years the volume of that investment was only $8.5-9 billion, Uladzimir Syamashka said.