Belarusian vice premier threatens to cancel gas contract with Russia

• 1.08.2008, 12:10

Belarus insists on signing an additional contract to gas pricing “in the connection with essential change of circumstances”.

First deputy prime minister of Belarus Uladzimir Syamashka said it at a press conference today, Interfax reports.

“We based on the Russian oil price forecast, predicting its declining, when signing that contract (31 December, 2006). As the civil codes of Russia and Belarus have articles saying a contract may be changed or cancelled due to essential change of circumstances, we offer to start negotiations on cancelling the contract, which is unacceptable, or supplement it to reach a civilised decision on gas price,” U. Syamashka said.

As the first vice premier emphasised, Belarus and Russia are having negotiations now.

U. Syamashka also noted that “if gas price amounted to USD119 per 1,000 cubic meters in the beginning of 2008, we pay now USD127.9 now.”

The first vice premier said based on the contract and its price formula, Belarus may face price jump, because energy prices are increasing in the world. He also turned attention to the fact that the new cabinet of minister of Russia is going to postpone transferring to equal gas prices at all markets from 1 January 2011 till 2014–2015.

U. Syamashka explained that if Russia “follows it strategy, it will have to double its energy prices from 1 January, 2011, otherwise it will be a disaster.” The first vice premier said “Russia will slow down its movement to equal prices principle and we will have an argument: why do they increase prices for such a small country as ours?”