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Russia and Belarus reach compromise on gas price — energy minister

Belarus has been negotiating a reduction in price for Russian gas since the beginning of this year

© EPA/TATYANA ZENKOVICH

MOSCOW, October 17. /TASS/. Russia and Belarus have reached a compromise on the price of Russian gas supplies, Energy Minister Alexander Novak said in an interview with Rossiya 24 TV channel.

"As for the situation on the debt for natural gas that has emerged this year, now I can say that we have found a solution. All the conditions were specified, and the key condition is that all debt will be paid off, and gas will be paid for in accordance with the agreement on the formula that has operated before," the minister said.

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Belarus has been negotiating a reduction in price for Russian gas since the beginning of this year. The current gas price for Minsk stands at $132 per 1,000 cubic meters, though the country’s Energy Ministry considers $73 per 1,000 cubic meters as a fair price for the gas it receives.

On October 11, Energy Minister of Belarus Vladimir Potupchik said that the Russian natural gas price for Belarus would reach $132 per 1,000 cubic meters on the border.

"The border price for Belarus gas supplies is $132 per thousand cubic meters for the time being. It will change along with the price change in Russia and will be calculated by "YNAD" formula," Potupchik said.

The "YNAD" formula contemplates the price calculation on the basis of the gas price for Russia’s Yamal-Nenets Autonomous District, transit costs, profit of Gazprom Transgaz Belarus, and other expenses.

Underpayment of Belarus for gas supplied in Russia currently amounts to $281 mln, the Minister said. An appropriate protocol was signed with Russia to make decisions on the basis of tradeoff, Potupchik said.

Belarus will settle the outstanding underpaid amount by October 20, the Minister said. "These funds are provided in the budget of Belarus and will be timely paid," he added.

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