Gazprom: cheap gas only for first three months

• 22.12.2007, 8:26

Gas price for Belarus will comprise USD 119 for the first quarter of 2008. Gazprom fixed the price according to a contract pricing formula, linked with oil products price in Europe.

The statement of the company says it following the results of the meeting between Alexey Miller, Chairman of Gazprom's Management Committee, and Uladzimir Syamashka, Deputy Prime Minister of Belarus.

The main issues on bilateral cooperation in gas field were discussed at the meeting.

The parties confirmed their mutual adherence to the contract between OAO Gazprom and OAO Beltransgaz of 31 December, 2006 on gas supply and transit for 2007-2011.

31 December, 2006 Gazprom and Beltransgaz signed an agreement on gas supply and transit for 2007-2011. The document defined price USD 100 per 1000 cu m for Russian gas for 2007 and the pricing formula starting from January 1, 2008 /which is in line with the Russian gas supply pricing formula for Europe/.

The document also agreed on the tariff rate for gas supply by the Beltransgaz owned networks /USD 1.45/ and the service charge for the Yamal-Europe gas pipeline operation /according to formula/.

31 December, 2006 Gazprom and the Government of the republic of Belarus signed a contract, according to which joint Stock Company Gazprom pays USD 2.5 bln for a 50% stake in Beltransgaz over the next four years.

Gazprom and the State Property Committee of the Republic of Belarus signed a purchase and sale agreement for Beltransgaz shares in May 2007. In June Gazprom paid USD 625 million and became an owner of 12.5 per cent stock of Beltransgaz.