Gazprom and Beltransgaz signed contract on supply and transit of gas in 2006

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Deputy Chairman of Gazprom Alexander Ryazanov and Chairman of Beltransgaz Dmitry Kazakov signed an agreement on supply and transit of gas in 2006. According to the contract, in 2006 Gazprom will supply 21 billion cubic meters of gas to Byelorussia, 1.5 billion of which only in case technical possibility. Price on gas and transportation tariff are similar with conditions of 2005 ($46.68 per thousand cubic meters of gas, and $0.46-0.75 per thousand km for transportation of gas, depending on the pipeline), REGNUM was informed in Gazprom press office.

They also stated that Gazprom switches to market principles of relation with all the countries that import Russian gas, including Byelorussia, but the gas price in 2006 was affected by several conditions. The first one is that Russia and Byelorussia form a united federative state, that presumes common standards of financial-economic showings. Second, in 2005 Gazprom officially became the proprietor of Byelorussian section of main pipeline “Yamal-Europe” (more than 50% of Russian gas, transported through Byelorussia goes through this pipeline), and started the long-time rent of the territory beneath the pipeline. Third, in 2005 the negotiations on creation of a joint enterprise in the basis of Beltransgaz to control Byelorussian gas transportation system. This will help in development and securing Russian gas supply to Europe through Byelorussia.

So, stated Alexander Ryazanov, the gas price is economically sound, and Gazprom’s policy towards Byelorussia is mutually beneficial to all stockholders of the company, including the government.