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Belarus to continue paying $128 for 1000 cubic meters of gas until year-end

Belarus will continue paying $128 for 1000 cubic meters of natural gas to Russia until the end of this year, Deputy Prime Minister Uladzimir Syamashka told reporters in Minsk on August 1.

Beltranshaz, Belarus’ gas supply company, and Russia’s Gazprom gas giant signed an appropriate deal earlier this week, he said.

Gazprom raised the gas price for Belarus from $119 per 1000 cubic meters in the first quarter of the year to $128 in the second quarter, but, according to Russian sources, Belarus continued to pay at $119 for some time.

According to Mr. Syamashka, Belarus has recently repaid a $24-million debt accumulated in the second quarter to Gazprom after the latter paid $105 million in gas transit fees to the country.

The vice premier warned that Belarus may be in for a sharp rise in the gas price next year.

Under a five-year contract, signed with the Russian natural gas monopolist on December 31, 2006, Beltranshaz pledged to pay 67 percent of the European market level in 2008, excluding delivery costs. The price is to gradually increase to the European market level by 2011. It is to be 80 percent in 2009, 90 percent in 2010, and 100 percent in 2011. //BelaPAN