Russia Demands Ownership of Pipelines

Russia's natural gas monopoly, Gazprom, wants a 50-percent stake in the Belarusian gas pipeline network if Minsk wants to keep subsidised prices for Russian imports, a top executive said in an interview.

"If the price for Beltransgaz is fair and our shareholding not less than 50 percent, we are ready to reexamine the question of supplying gas to Belarus at Russian prices," Gazprom Vice President Alexander Ryazanov told the Izvestia daily.

Belarus, which is almost totally dependent on Russian gas for its energy supplies, has been locked in conflict with Gazprom for months over the withdrawal of gas subsidies by Moscow.

Russian gas delivered to cash-strapped Belarus has been sold at the subsidized price of 30 dollars (23 euros) per 1,000 cubic meters. Russia is insisting that the price be raised at least to 50 dollars, the same price as for other ex-Soviet republics.
Gazprom threatened last Friday to cut off all natural gas supplies to Belarus within five days but Minsk accused Moscow of blackmail to grab control of its gas transport network.

Independent company TransNafta agreed to supply Belarus 360 million cubic meters -- enough to last it until midnight Tuesday -- under an emergency contract approved by Gazprom.

Gazprom is bidding to take control of Belarus's state-owned gas pipeline operator, Beltransgaz, which is now being privatized and is a major conduit for Russian gas exports to Western Europe.

Belarus refused to allow Gazprom a controlling stake in the new company and the two sides are also haggling over the price. Minsk values the company at five billion dollars, while Gazprom insists it is worth only one billion dollars.