Alexey Miller, Chairman of the Gazprom Management Committee and Vladimir Semashko, First Deputy Prime Minister of the Republic of Belarus held a telephone conversation today.

The parties discussed interaction in the gas sector, particularly concerning the prospects for signing the documents on acquisition of a 50 per cent stake in Beltransgaz by Gazprom. The participants highlighted that nearly all articles of the draft agreement were settled. Following the results of the meeting Alexey Miller noted, “Unfortunately, the Belarusian party goes on associating the opportunity for signing the documents on Beltransgaz with settling the terms and conditions of a new contract for gas supply to Belarus. We believe that it may drag on the negotiation process still changing nothing in fact.”

During the telephone conversation it was also stressed that the contract terms valid through 2011 couldn't be altered.

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).

Gazprom holds a 50 per cent stake in Beltransgaz.