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Putin announced signing of documents on single oil and gas market of Russia and Belarus

Moscow and Minsk intend to sign a document on the creation of a unified gas market within the Union State of Russia and Belarus

MOSCOW, September 10. /TASS/. Russia and Belarus intend to conclude agreements on the unification of energy markets, including gas, oil and electricity, as part of the Union State. Russian President Vladimir Putin announced that such an agreement had been reached during his talks with Belarusian President Alexander Lukashenko in the Kremlin on Thursday.

"It is envisaged to conclude an agreement on the unification of markets of oil and oil products, as well as an agreement on a single electricity market," the Russian leader said.

In addition, he noted, Moscow and Minsk intend to sign a document on the creation of a unified gas market within the Union State of Russia and Belarus by December 1, 2023.

The price of Russian gas for Belarus in 2022 will remain at the level of 2021, Putin said.

"The price of Russian natural gas for Belarus in 2022 will remain at the current year's level," Putin said at a press conference following Thursday's meeting in the Kremlin.

Gas price

The countries that have signed long-term contracts for Russian gas supplies can "rub their hands" as they buy it cheaper in the situation when the prices for energy carriers are rising in the world, Putin said.

"On the free market in Europe [the price is] $650 per 1,000 cubic meters. Those smart guys in the previous line up of the European Commission invented market pricing for gas. So here is the result for you," Putin said.

"But our approach is different, we also have market pricing, this price is tied to the price of oil. Nobody regulates it, the market regulates it, but fluctuations are much softer," he added.

" Under long-term contracts and in compliance with our pricing principle, Gazprom does not sell gas at such a price [$650 per 1,000 cubic meters] and those who agreed to conclude long-term contracts with us in Europe can now only rub their hands and rejoice," Putin said.

"Otherwise, [they] would have to pay $650 [per 1,000 cubic meters]. In Germany Gazprom sells gas at $220 [per 1,000 cubic meters], at least that was the case quite recently. This price will rise, but it will be a soft hike," Putin stressed.

He noted that Gazprom is also interested in this situation because, "this creates a certain safety cushion" for the company.

Earlier on Thursday, it was reported that the gas price in Europe was close to $700 per 1,000 cubic meters. At the same time, by the end of trading the gas price stopped at $690 per 1,000 cubic meters. The overall increase in gas prices per day amounted to 1.83%.