RUSSIA: Gazprom denies Belarus media claims that an agreement has been reached on natural gas sales

Russia's gas monopoly, Gazprom, denied on Sunday (December 31) Belarus press reports that an agreement has been reached on natural gas sales. Meanwhile, Belarus' top negotiator arrived in Moscow to meet with Gazprom officials in the hopes of reaching a deal before the January 1 deadline. "The Belarus side has made a number of statements, but we do not confirm that an agreement has been reached," Gazprom's chief spokesman Sergei Kupriyanov told the press conference. "As far as concessions, Gazprom has already made a sufficient number of concessions in favour of Belarus. And we consider that these offers are absolutely favourable and reasonable, and totally takes into account the relationship between our countries in all regards, especially in the gas sector.'' If a contract is not signed on time, Kupriyanov said Gazprom plans to invite independent experts to observe gas transit on the territory of Belarus. Gazprom is concerned that Belarus might try to siphon off gas that is earmarked for the European Community, Gazprom's main customer. Gazprom has threatened to cut gas supplies to Belarus -- one of the transit routes for gas to European consumers -- at 0700 GMT on January 1 unless a contract is signed setting a new pricing structure. Shortly after a new round of talks began in Moscow, Gazprom said the level of the delegation sent by Belarus was too low for any real progress to be made and it demanded Minsk send its top negotiator, first deputy prime minister Vladimir Semashko. Semashko arrived in Moscow this morning (December 31), but no results have been announced. Gazprom has said it will not change its latest offer and wants Belarus to pay $105 USD per 1,000 cubic metres from 2007, up from $46 USD now. Gazprom also wants a 30 percent ownership stake in the company that owns Belarus pipelines. By comparison, European customers pay $275 USD a cubic metre. Beltransgas deputy director Mikhail Puchilo said Minsk wanted any proceeds from a partial sale of the Belarus pipeline to be enough to cover the purchase of Russian gas imports for four years. The previous round of gas talks with Belarus ended abruptly late on Friday (December 29) after Belarussian President Alexander Lukashenko said he would not tolerate Russia's "blackmail" and his nation would rather "go into the bunkers but will not surrender". A Belarussian government spokesman said it remained unclear if Semashko would be sent to Moscow for talks with Gazprom. The row with Belarus, hitherto a loyal Kremlin ally even as other ex-Soviet republics sought to move out of Moscow's orbit, is part of a wider drive by Gazprom to bring its prices in the former Soviet Union closer to European levels.

ITN Source | December 31, 2006

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