Gazprom To Set Market Price on Gas

Belarusian and Russian governments met on Thursday for talks about gas prices 2007 in Moscow.

Russia is seeking to increase prices to many former parts of the Soviet Union after years of selling gas at discounted levels.

Attempts have met resistance from other nations and prompted European concerns after winter supplies were disrupted.

Gazprom's head Alexey Miller said that in 2007 the gas supply to Belarus must be set according to the market prices.

Gazprom wanted to increase to price to $145 per thou cu.m. Now Russia supplies its natural gas to Belarus for $46, 7 per thou. cu.m.


The BBC's Stephen Eke in Moscow says Belarus currently pays about one-fifth of the market rate for Russian gas, the lowest rate among all national consumers.

"The discount is the result of Belarus's unique relationship with Russia, as well as many rounds of fraught negotiations over the past decade," he said.

"But Gazprom, Russia's gas giant and the sole supplier to Belarus, has made clear it expects all its consumers to pay, or eventually pay, market rates," he added.

According to the BBC's correspondent, the consequences of a price hike for Belarus would be severe.

"Subsidised energy has helped ensure that an unreformed, still centrally planned economy has not only stayed afloat, but has also achieved high rates of growth and some of the best living standards in the former Soviet Union," he said.