Belarus Bows To Russian Pressure, Agrees To More Than Double Rates Paid For Gas - Guardian

[hatrack]

Belarus narrowly escaped a winter energy crisis last night after a last-minute deal on gas prices was struck with Russian gas monopoly Gazprom. Gazprom had said it would cut off supplies to Belarus, also threatening fuel supplies to European countries served by the Belarus pipeline, if a deal was not reached by midnight last night.

The five-year contract will require Belarus to pay $100 per 1,000 cubic metres, a steep rise on the previous tariff of $45, but a reduction from the $105 that Gazprom had demanded. The agreement requires Belarus to pay gradually increasing prices after the current contract until world market levels are reached by 2011.

"A mid-term agreement was reached on gas prices to Belarus and on transit shipments to Europe," Gazprom boss Alexei Miller told a press briefing at the Russian gas monopoly's headquarters.

Gazprom will also be required to buy 50% of the shares in Beltransgaz, the Belarusian pipeline network. Gazprom had stipulated that Belarus pay $30 of the new price in Beltransgaz shares, but under the new contract Belarus will pay for the gas in cash and Gazprom will buy the pipeline shares in cash.

EDIT

http://business.guardian.co.uk/story/0,,1980787,00.html

[msongs]

1. that's the future for the USA unless we embrace solar and other alternatives

the people (us) have to lead because the institutions of government and the corporations will drag their collective feet and try to subvert the new technologies.

Msongs
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