UPDATE: Report: Russia to cut gas price for Belarus, Minsk to pay debt

(rewrites throughout)

MINSK, Oct 10 (PRIME) -- Russia has agreed to cut the 2016 gas price and outlined a plan of further reductions for the next few years for Belarus, while Minsk agreed to redeem accrued debt for past deliveries, Belarusian Deputy Prime Minister Vladimir Semashko told Belta newswire on Monday.

“We must give this money back. But in exchange, we have received a one-time significant 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,” Semashko said.

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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