Flowers for Lukashmenko

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"28 December 2005 15:59
Russia and Belarus sign gas contract for 2006
Alexander Ryazanov, Deputy Chairman of Russia's gas giant Gazprom,
and Dmitry Kazakov, General Director of Beltransgaz, Belarus'
national gas company, have signed a contract for natural gas supplies
and transportation in 2006. Gazprom will supply 21 billion cubic meters
of gas to Belarus next year, of which the delivery of 1.5 billion is
made conditional on a technical possibility. Prices for gas supplies
and transportation tariffs remained the same as in the 2005 contract.
"Gazprom is moving towards market principles for working with all
importers of Russian gas, and Belarus is no exception," Ryazanov
said, noting that the prices for 2006 reflected several factors.

Firstly, Russia and Belarus constitute the single Union State, which
implies single standards for financial and economic performance of the
two countries.

Secondly, Gazprom has become the owner of the Belarusian sector of the
trunk pipeline from Russia's northern Yamal Peninsula to Europe,
which accounts for the transportation of more than half of Russian gas
exports through Belarus.

Thirdly, Russia and Belarus have resumed negotiations to create a
single company to manage Belarus' gas transportation system, which
will promote its development, making Russia's gas supplies to Europe
through Belarus more reliable.

"So, the prices are economically justified. Gazprom's policy with
regard to Belarus is beneficial to the company's shareholders,
including both the government and private shareholders," Ryazanov
stressed.

The Russian-Belarus contract for gas supplies in 2005 was signed on 30
December 2004. Russia's gas sales to Belarus are expected to total
20.15 billion cubic meters at $46.68 per 1,000 cubic meters.

In 2005, Russia transported 40.4 billion cubic meters of natural gas
through Belarusian territory, including 21.7 billion cubic meters
through the Yamal-Europe gas pipeline. The tariff for the
transportation of Russian gas was $0.75 per 1,000 cubic meters for
transportation through Beltransgaz, and $0.46 for transportation
through the Yamal-Europe gas pipeline.

On 5 December 2003, Gazprom and Beltransgaz signed an agreement to
restructure Belarus' principal debt for gas supplies in 1999, 2000
and 2002."

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