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No sign of progress in talks between Belarus, Russian giant over gas price dispute
Published in Saudi Press Agency on 30 - 12 - 2006

Talks resumed Saturday between the Russian
state natural gas monopoly, OAO Gazprom, and Belarusian
officials seeking to avert a New Year's Day gas cutoff that
could affect European supplies, AP QUOTED officials as saying.
A Belarusian official said the ex-Soviet republic was
hoping for a new agreement on supplies of Russian gas by a
Sunday deadline, but there was no outward sign of progress
in the bitter price dispute that reflected worsening
relations between the two nations.
Negotiations that began after Belarusian energy officials
flew to Moscow late Friday resumed in the morning,
according to Gazprom spokesman Sergei Kupriyanov, but he
said progress was unlikely without «the main negotiator»
from Belarus, First Deputy Prime Minister Vladimir
Semashko.
Semashko sent a message to Gazprom outlining the
Belarusian proposal for a supply deal and was ready to fly
to Moscow once he received an answer, said Mikhail Puchilo,
deputy director of the state company that controls
Belarusian gas pipeline system, Beltransgaz.
«We hope that the sides will agree today or tomorrow and
a final decision will be adopted,» he said.
Semashko had held talks with Gazprom chief Alexei Miller
earlier in the week, but returned to Minsk and suggested
Belarus could siphon gas from pipelines carrying Russian
gas across its territory to Europe if the company cuts off
supplies meant for Belarus.
Gazprom says that it will suspend supplies to Belarus at
10 a.m. (0700GMT) Jan. 1 if no new contract is signed to
replace the one that expires Sunday, and has warned its
neighbor against disrupting deliveries to Europe.
Gazprom, which has been raising prices closer to market
levels after selling gas cheaply to ex-Soviet republics for
years, is demanding that Belarus pay US$105 (¤80) per 1,000
cubic meters in 2007 _ US$75 (¤57) in cash and US$30 (¤23)
in shares of Beltransgaz.
The price would increase annually, reaching a market-style
European price _ minus the transit cost and export duties _
by 2011. For the next four years, Belarus would pay a
portion of the cost in shares of Beltransgaz.
Puchilo said the talks were focusing on a price for next
year and the ensuing years and that Belarus «insists on an
appropriate price,» but he did not say whether Belarus was
willing to budge from what officials have said is their
offer to pay a total of US$75 (¤57) per 1,000 cubic meters
in 2007.
Belarusian President Alexander Lukashenko, whose
popularity and grip on the nation of 10 million could be
weakened if he has to swallow a sharp increase in the price
for Russian gas, accused Gazprom late Friday of blackmail.
Gazprom initially was demanding US$200 (¤152) per 1,000
cubic meters.
The European Union and Germany, which receive some of
their Russian gas via Belarus, have urged the neighbors to
resolve their dispute quickly and to guarantee supplies.
Europe is wary of a repeat of the brief supply shortages
that ensued when Gazprom halted deliveries to Ukraine
during a similar dispute a year ago.
Russia provides more than two-fifths of the EU's gas
consumption _ though most of it travels through Ukraine
rather than Belarus _ and the price war with Ukraine over
last New Year's provoked European concerns about Russia's
reliability as an energy supplier.
Gazprom has warned Belarus not to siphon gas from the
Russian-owned Yamal-Europe pipeline, which carries about
two-thirds of the some 44 billion cubic meters of gas that
transits Belarus annually en route to European countries _
mainly Germany, Poland and Lithuania.


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