Russia has resolute position on gas price

• 7.12.2007, 14:27

The ministry of Industry and Energy of the Russian Federation stands against the reconsideration of gas price formula for Belarus, deputy head of the ministry Ivan Materov declared in Budapest on Friday.

“It’s possible to reconsider a formula every time, but it’s not expediently,” the Russian official emphasised, noting that it is Belarusian side, who suggests reconsidering of the formula, Interfax reports.

He said the formula of gas price for Belarus would soon be calculated.

It should be reminded that information has been spread recently that during the negotiations in Moscow on 5 December Russian side suggested Belarus to buy gas in 2008 at USD 165 per 1.000 cubic meters.

Belarusian side insisted on price of USD 119.5 per 1.000 cubic meters. So, the conducted on 5 December negotiations yielded no result.

It should be reminded that on 31 December, 2006 OAO Gazprom and OAO Beltransgaz signed the gas supply and transit contract for 2007–2011. The document identified the price of Russian gas for 2007 – USD 100 per 1.000 cubic meters, and the pricing formula starting from 1 January, 2008 (which is in line with the Russian gas supply pricing formula for Europe). As it was agreed gas delivery price to Belarus will comprise 67 per cent of the average European gas price, it is no less than USD 160 per 1.000 cubic meters.