Gazprom may cut 85% of gas supplies to Belarus

Russia is not going to handle Belarus with gloves if the latter doesn’t pay its gas debt.

Gazprom may cut 85% of gas supplies from June 21 due to the debts of the Belarusian party, Alexey Miller, the head of the Russian gas giant, told journalists during the St Petersburg International Economic Forum on June 17.

“Considering the price of gas supplied in June and the amount of debt of $192 million, gas deliveries to Belarus could be cut by 85% of the planned volume. The remaining 15% will allow Belarus to maintain its gas transport system until it compensates in full its outstanding debt,” BelaPAN quotes Miller with a link to RIA Novosti.

The reports note that the contracted price of gas deliveries to Belarus is $169 per 1,000 cubic meters, but Minsk pays only $150 thus accumulating debt. As estimated by Gazprom, paying the lower price can make Beltransgaz’s debt grow to $500-600 million by the end of the year.

“We hope very much that Beltransgaz will finally pay the debt by June 21,” Miller said. “Yet another letter with demands to strictly follow the contract and pay arrears was sent yesterday. As we warned the Belarusian party, if Beltransgaz doesn’t take any steps, Gazprom will impose restrictions on gas deliveries to Belarus under item 6.4 of the contract of December 31, 2006.”

Russian President Dmitry Medvedev told Gazprom CEO Alexey Miller in Gorki June 15 that Minsk had five days to pay the gas debt.

Lukashenka hold negotiations with Medvedev and Russian PM Vladimir Putin in Moscow on June 11. There’s no information about the results of the meetings.