Belarus Blackmail»

Russia's independent gas producers wish to sell gas to Belarus at commercial prices, following their decision to cut deliveries, ITAR-TASS news agency reported.

Quoting experts, the agency said that whereas last year Russia had supplied Belarus with 10.2bn cu m of gas with 1,000 cu m costing around 30 dollars, Russia now wants to sell gas to the neighbouring republic at 50 dollars per 1,000 cu m, "significantly below world prices". Belarus, said the agency, would prefer to pay between 40 and 41 dollars per 1,000 cu m.

The experts recalled that talks to set up a joint enterprise between Gazprom and Beltranshaz have all but collapsed, because Belarus values the Beltranshaz assets at 5bn dollars, but Gazprom is only willing to pay 580m dollars for them. They are nevertheless optimistic that a compromise will be found, according to the agency.