Russia can give cheap gas only in return for independence

Average gas price for Belarus will be USD 125 for 2008, weekly newspaper “Belorusski Rynok” (Belarusian Market) claims, referring to its sources in two specialised Belarusian ministries. Economist Yaraslau Ramanchuk thinks Russia is ready to concede a question of gas price in return for complete merger of financial system of Belarus, which will lead to loss of independence of the country.

According to the newspaper, Belarusian party was conducting intensive negotiations with representatives of the Russian government at the end of 2007 in hope to fix price for 2009-2011. The negotiations have not met success yet. But they are supposed to be continued in late January.

Economist Yaraslau Ramanchuk, head of the Mises research center, is sceptical about this information. He refers to his sources in the Russian government.

“Price for Russian gas for Belarus for 2008 has already been determined, according to the information I have, it is USD 135 for 1.000 cu m in the second quarter of the year and USD 165 in the third quarter,” Yaraslau Ramanchuk said to the Charter’97 press center.

But the expert stressed that gas price is a political issue in case with Belarus. “It depends on how parties will agree on, for example, the so called constitutional act. Personally, I don’t believe it will be signed. Because, in my view, the main thing for Russia today is financial expansion, merger of Belarusian financial system. It explains both huge credit at the end of the last year and promise to grant a bigger one this year. They appease us to enfetter us. For the sake of this global goal Russia is ready to make concessions in gas price,” the economist thinks.