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Belarus pledges to buy Beltranshaz back for $5bn if it violates its commitments

In the November 25, 2011 agreement on the sale of Beltranshaz to Gazprom, the Belarusian government pledges to buy the pipeline company back for $5 billion at Gazprom’s request if it fails to meet certain requirements provided for by the agreement.

The text of the agreement, whose excerpts were released by Russia`s RIA Novosti on Tuesday, was never officially published.

According to the RIA Novosti report, the Belarusian authorities would also have to compensate Gazprom for its losses resulting from Belarus’ failure to meet the requirements.

In particular, the Belarusian government is required to use the natural gas purchased from Gazprom only on the territory of Belarus; ensure that Russian natural gas can be transported through Belarus without hindrance or interruption; grant Beltranshaz the exclusive right to import gas from Russia; and refrain from discriminating against the new owner by using "special management rights," including the golden share, a rule that allowed the government to intervene in the management of companies that it has ever owned.

The agreement also prohibits Belarus from siphoning off gas destined for other countries and from changing the terms of use for the land occupied by the Belarusian section of the Yamal-Europe pipeline.

Gazprom acquired 50 percent of Beltranshaz between 2007 and 2010 for $2.5 billion and increased its stake to 100 percent in late 2011 by paying another $2.5 billion to the Belarusian government.

Gazprom announced after acquiring the other 50-percent stake in Beltranshaz that the company would be renamed Gazprom Transgaz Belarus. //BelaPAN