Gas Prices for Belarus may be Halved in 2012

In 2012, the price of Russian gas for Belarus could reach just over $150 per thousand cubic meters, while in 2013 it may become equal to that in Russia. The cost of gas will be calculated, adjusted for the price in a certain region of Russia. All this is going to be stipulated in intergovernmental agreements and contracts with Gazprom.

"The Price in question for 2012 is slightly over $50 per thousand cubic meters (against the current $300)," Russian officials familiar with the negotiations reported to the newspaper "Vedomosti".

"The range of $150-$190 was discussed a couple of weeks ago," adds a Gazprom employee.

For comparison, the average price forecast for the Group in Russia this year is about $99 ex VAT, while next year - $106-$107. Which region of Russia will be taken into account in calculations for 2013 is not disclosed by the newspaper sources, though added that it’s not going to be Smolensk region (Belarus wanted to look up to).

"This price will be added up with Gazprom costs on transport, storage, and "implementation," followed by indexing, for example, the rate of inflation, in subsequent years," added the sides.

That is, in fact, it’s going to be a new price zone of Russia, said one of the newspaper sources. The price will be really close to that in Russia, confirms a White House employee.

Gazprom representatives, as well as the Belarusian and Russian governments, withhold comments.

Gas price concessions cause about $3 billion loss for Gazprom only in 2012. The sources of "Vedomosti" do not say what Russia is going to get in return.

A number of joint projects were recalled, though, including the merger of MAZ and KamAZ. In turn, a Gazprom employee assures that the company will not lose that much: with Beltransgaz stake, the Russian holding will gain profits from domestic sales of raw materials within the country.

The Russian gas monopoly Gazprom plans to sign gas export agreements with the Belarusian authorities on November 25. This was stated by deputy chairman of the company Valery Golubev. At the same time an agreement on Beltransgaz stake purchase by Gamprom is going to be concluded, as well, he added.

The current gas agreements will expire on December 31.

In addition, Gazprom has spread information that Belarus owes $136 million for the Russian natural gas.