Belarusians would have to pull in their belts :: Charter'97 :: News

Belarus expects to transit to 100% payment for Russian gas since July 2007. As journalists were told by first vice prime-minister Uladzimir Syamashka today, since July Belarus would transit to 100% payment and extinguishment of debts for Rusisan gas. He reminded that in the first six months of 2007 the country paid 55% of gas costs as agreed with Gazprom. As said by Syamashka, Belarus had to use this regime of payment to adapt to price hike and “cushion the blow and shock for economy, a price hike by 214%. However, though a half of the price of Russian gas is paid, costs of housing and public utilities, consumers goods have grown considerably, so what Belarusians should expect in the second half of the year?

“The result is predictable. The weight of the new prices is transferred on consumers; there is no doubt about that. Preparation for a new heating season is to start in summer, when our bills wouldn’t change much as compared to winter season. In summer a general grow in prices would take place certainly. If the regime would not get a billion credit from Russia, devaluation of Belarusian ruble would take place. And then, after summer holidays, people would take back their money from banks and convert them into dollars. The Belarusian authorities do not have an acceptable way of situation development, we see an inertia of a confused regime,” told a well-known economist Yaraslau Ramanchuk to Charter’987 press-center.

As we have informed, since January 1, 2007 Belarus signed a contract with Gazprom for gas deliveries and transit. Russian gas cost in 2007 was set at a price of $100 per 1,000 cubic metres.