Today the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Dmitry Kazakov, General Director of Beltransgaz. The parties discussed Beltransgaz independent price estimation progress and terms of Russian gas deliveries in 2007.

Reference:

Gazprom switched over to the market principles of cooperation with all countries purchasing Russian gas. Belarus is the last country to have retained a low purchase price for Russian gas in 2006 due to a number of decisions made by Belarus to meet Gazprom economic interests. Particularly, the parties registered Gazprom’s ownership of the Yamal-Europe Gas Pipeline stretch in Belarus and granted Gazprom a long-term lease on the land along the pipeline. Therefore, the switch over to the European price level for Belarus is planned to be implemented in 2007.

Gazprom and Beltransgaz sealed a Gas Delivery and Transit Contract for 2006 on December 27, 2005. The gas price and transmission tariff in 2006 are in line with the arrangements for 2005. Under the Contract, Gazprom will provide Belarus with 21 bcm of gas, of which 1.5 bcm will be supplied provided there is capacity available.

The independent value estimation for Belarus gas transportation system facilities was provided by ABN AMRO. Said assets are assumed to be potentially used as payment for gas supplies.