Belarus may get gas discount from Russia

MOSCOW, Aug. 16 (UPI) -- Russian Prime Minister Vladimir Putin said Belarus could get a discount on natural gas prices for 2012, though Gazprom stressed market conditions were tough.

Inflation in Belarus is in the double digits and the country's president in June threatened to close the borders if there were a fiscal emergency. Minsk blamed rising prices of natural gas from Russia for some of its economic woes.

A gas discount from Russia would expire this year, after which natural gas prices will be pegged to market conditions.

Putin said Minsk would start to get a better gas price formula starting next year, noting the matter was tied to Gazprom taking on the remaining 50 percent stake in Belorussian gas transportation company Beltransgaz, Russia's state-run news agency RIA Novosti reports.

Alexei Miller, the chief executive officer at Gazprom, said negotiations could begin as early as September and new contracts could be signed by the end of the year.

"Hydrocarbon market conditions are hard for consumers," he stressed. "Gas prices are high and it is tough for former USSR republics, including Belarus."

Source: United Press International (UPI).
Link: http://www.upi.com/Business_News/Energy-Resources/2011/08/16/Belarus-may-get-gas-discount-from-Russia/UPI-19541313497896/.