Today in Minsk Alexey Miller, Chairman of the Gazprom Management Committee resumed the negotiations on terms and conditions for Russian gas supplies to Belarus at the meeting with Belarusian President Alexander Lukashenko.

The parties scrupulously addressed the primary issues surrounding the conclusion of a new contract. The issue of raising Gazprom's stake in Beltransgaz from 50 to 100 per cent was an integral part of the negotiations.

Alexey Miller and Alexander Lukashenko highlighted the efficiency of the current dialogue and noted that establishing the Common Economic Space and the Customs Union on equal terms for Russian and Belarusian business entities was a top-priority objective. The ongoing negotiations are targeted at this particular objective.

“Today we are getting ready to produce a major package of documents,” highlighted Alexey Miller during the meeting. “It includes a new contract for gas supplies to Belarus to be enacted on January 1, 2012 and supported by an intergovernmental agreement on pricing and tariff formation principles; an intergovernmental agreement and a purchase and sale agreement for a 50 per cent stake in Beltransgaz.”

The negotiating parties also discussed the Belarusian proposal on involving Gazprom in other investment projects in Belarus along with acquiring a stake in Beltransgaz.

Background

On December 31, 2006 Gazprom and Beltransgaz signed the gas supply and transit contract for 2007–2011. In particular, starting from January 1, 2008 the contract set forth the price formula (corresponding to the price formula for Russian gas supplies to Europe) and the discount rates for the price between 2008 and 2010 (0.67, 0.8 and 0.9 respectively).

In August 2011 Vladimir Putin, Prime Minister of the Russian Federation tasked the Russian Energy Ministry and Gazprom to determine the discount rate for the price of gas to be supplied to Belarus starting from 2012.

Gazprom currently holds a 50 per cent stake in Beltransgaz.