Do Belarusian authorities refuse to pay to Kremlin?

Minsk states necessity of “simultaneous transition” to equal-profit prices for gas and call the Kremlin’s ultimatum “political”.

“It seems that Minsk has forgotten the basic principles of contract concluded for four years for gas deliveries to Belarus in 2008-2011. The terms of the contract, and namely gradual increase of the decreasing coefficient to the price, were based upon the principle of simultaneous transition of the two countries to equal-profit prices,” stated a source in the appropriate ministry to “Interfax”.

He underlined that when the contract was concluded, “the conditions were offered by the Russian side”. “Now it happens that postponing transition to equal profit prices at its territory, Russia violates the basic conditions which were forming the foundation of the contract for gas deliveries to Belarus, and that is why it should be revised,” the interlocutor is convinced.

He underlined that these arguments are the starting point of the position of the Belarusian side, which in 2010 pays for gas according to the average annual price of 2009 ($150 per 1,000 cubic metres), and not according to the contract price ($174 in January-April 2010).

“The issue of the nominal cost is not crucial for Belarus, the main thing is equal profit for us both for Belarus and Russia, it is a foundation of competitive ability of our enterprises,” the interlocutor said.

He also finds it very difficult to forecast the further development of the situation. “On the one hand, there are agreements previously confirmed by the both sides at the highest level on transition to equal-profit prices simultaneously. On the other hand, the leadership of Russia does not remember that at all,” he stated. To his mind, the stark position of the Kremlin concerning liquidation of the formally existing gas debt is caused by “political reasons”.

As it was informed, the leadership of Russia insists on liquidation of the indebtedness for gas by Belarus within 5 days. According to the Belarusian Statistics Ministry it is $133 mln, while Gazprom considers it to be equal to $192 mln. Otherwise Gazprom threatens to apply “strict measures”.