UPDATE 2: Russia to cut gas price for Belarus, Minsk to repay $300 mln

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MINSK/GORKI, Moscow Region, Oct 10 (PRIME) -- Russia has agreed to cut the 2016 gas price and has outlined a plan of further reductions for the next few years for Belarus, while Minsk agreed to redeem a U.S.$300 debt for past deliveries, government officials said on Monday.

“The debt, which has accrued for January gas payments will be redeemed fully until October 20 this year. It amounts to more than $300 million,” Russian Deputy Prime Minister Arkady Dvorkovich told the government.

“The current payments which are envisaged by the contract will be made fully even before, this week in fact, so that no new debt is mounting.”

He said that the payment will be done at the current contract price.

Belarusian Deputy Prime Minister Vladimir Semashko told Belta newswire: “We must give this money back. But in exchange, we have received a significant one-time gas price reduction already this year and other types of support from Russia. And further on, we have outlined it in a protocol, a price decrease trajectory over the years to come,”

Prime Minister of Russia Dmitry Medvedev said that no price revisions to the contract have been made so far: “I would like to emphasize again that the price for gas supplied to Belarus remains the same, as calculated under the existing formula, no adjustment is made. It is necessary to repay the debt in order to restore normal economic relations. I hope, the Belarusian partners understand this.”

Russia and Belarus held negotiations on energy disputes on October 7.

In July, Russian Energy Minister Alexander Novak said Belarus owes Russian gas giant Gazprom U.S. $270 million. Gazprom said Minsk underpays the company for gas, while Belarusian Energy Minister Vladimir Potupchik said that a fair price would amount to $73 per 1,000 cubic meters instead of $132.77. Minsk did not acknowledge the debt.

The Belarusian antitrust body earlier decided to raise the tariff for transit of Russian oil by 50% on average from October 11. The Russian antitrust body and oil pipeline monopoly Transneft rejected the increase.

“I reviewed a government report on the oil and gas issues with Russia yesterday. As far as I understand, another debate is over and we have managed to sign a corresponding document, the problematic issues were settled and solved as of yesterday at least,” Belarussian Pressident Alexander Lukashenko said.

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