Gazprom not only closed tap on gas, but increased gas price

The price of Russian gas for Belarus in Q3 2010 will be $193-194 per 1,000 cubic metres.

It has been stated by Gazprom spokesperson Sergei Kupriyanov, RIA Novosti reports.

In Q1 the gas price for Belarus, according to the contract, was to be equal $169, and $184 per 1,000 cubic metres in Q2. However Beltransgaz paid for deliveries in accordance with the price of $150 per 1,000 cubic metres, which had been set by one side, which has caused indebtedness of the Belarusian side, $192 million dollars.

On June 15 Russian president Dmitry Medvedev declared a so-called “gas ultimatum” to Belarus, saying that the debt to Gazprom must be repaid within 5 days. As Beltransgaz has not settles the indebtedness within this term, since June 21 Gazprom cut gas deliveries to Belarus by 15%.

At the same time, Russian Prime Minister Vladimir Putin stated that within the framework of the contract with Beltransgaz the Russian gas concern can cut gas deliveries by 85% and even more.

Putin has also stated that if needed, Gazprom can deliver gas to Europe bypassing Belarus, through Ukraine.

Russian Prime Minister has also ordered to speed up construction of the underground gas storage facility in Kaliningrad region.