Government will manage with the debt
25.05.2007
Belarus is looking for ways to pay off a $400 million debt for supplies of Russian natural gas to the country accumulated since January 2007, the first deputy prime minister said Friday.
Under an agreement with Russia's energy giant Gazprom on December 31, 2006, Belarus is only paying 55% of the total cost of gas supplies received in the first half of the current year. The move follows Russia's decision to raise gas prices for the former Soviet republic from $46.7 to $100 per thousand cu m.
"I think the government will be able to pay off the debt," Belarus First Vice Premier Vladimir Semashko said.
"We are working on it, and we will look into different possibilities," he said, adding that the payment deadline had been set for July 23, 2007.
Belarus (8) -- Analyses -- 2007
The colaboration between Russia and Belarus
25.05.2007
Last week, Gazprom signed a deal to purchase a 50% stake in Belarusian pipeline operator Beltransgaz for $2.5 billion.
Gazprom will make equal payments in four stages from 2007 to 2010, acquiring a 12.5% stake in Beltransgaz at each stage, which will ensure stable gas supplies to Central and Western European consumers.
"No matter what they say about Russia after it raised tariffs for oil and gas , we are still buying oil at favorable conditions," Belarus First Vice Premier Vladimir Semashko said.
At present, Russia sells oil to Belarus for $370 per ton, while the average price for crude on global markets is about $500 per ton, he said.
Russia earlier said it would consider granting a $1.5 billion stabilization loan to Belarus in the next few months to cushion the gas price hike in December 2006, which sparked an energy dispute between the two countries and triggered more accusations in Europe that Russia is using oil and gas as a political weapon.
Bulgarian