Mass Media: Russia Asks Belarus to Share the "Family Silver"

Vice-Prime Minister Uladzimir Semashka held talks in Moscow.

Other Russia-Belarus talks on gas price and debt were held in Moscow. Moscow's offer to revive privatization projects involves a question in difficulty.

The parties are not in a hurry to share information on the negotiation progress. Journalists found it out from their sources. In particular, RIA News announced it referring to the representative of the Energy Ministry of Belarus. The details are not specified. "Negotiation process is on," a source informed. Vice-Prime Minister Uladzimir Semashka heads the delegation of Belarus, Nezavisimaya Gazeta writes .

According to Russian sources, the Belarusian gas debt has reached $270 million since the beginning of the year. Since then the issue has been negotiated upon. Belarusians believe that the price should be lower because energy is getting cheaper in the world market. Besides, Russia itself reduces the price for some its customers. For example, for Armenia. And does not want to effect the compromise with Minsk. The cost of 1 thousand cubic metres (cu m) of gas for Belarus equals to $132.77. Meanwhile, Minsk considers $73 fair. By the way, the Smolensk region pays $72. Minsk's main argument is an intergovernmental agreement, which implies equal-netback pricing (export price minus transportation) to Belarus.

According to the same sources, Belarus has allegedly agreed to pay off the debt for the previous period, but insists on decrease of gas transportation price (which now makes $90) to $65.5 per 1 thousand cu m. In this case, the total price should be as least $100. Russia is open for talks, but it counters with a proposal - to revive the idea of joint projects with SP MAZ, Grodno Azot and others.

Russia-Belarus relations have always faced challenges and solutions are bound. Thus, Russia has tied the gas issue to the oil one. It cut oil deliveries to Belarusian refineries by 37%. According to many experts, it formed up the most valid argument. Minsk revenue from oil refining declined due to drop in world prices and the reduction of processing volumes can be even more disastrous for Belarus, which now experience serious and, according to experts, a protracted economic crisis. According to experts, losses of Belarus make up about $200 million in the quarter. It is even more than the sum Minsk can save on the gas price.

Such selective attitude towards consumers (Armenia has the price reduced, and Belarus has not), disregard of integration arguments gives rise to the experts to look for a political ground in the conflict. Russia wants to reprove its closest ally for too many bold and independent statements and actions. First of all, in the military sphere. Experts also note that the Belarusian government has stopped to call NATO a monster and creep people out. Moreover, Foreign Minister Uladzimir Makei and later his deputy Alena Kupchyna said that NATO did not pose any threat to Belarus. However, the fact that the gas and oil conflicts are boiled in the government and enterprises, according to experts, proves that Moscow does not want to hypercharge relations with almost one ally.

Moreover, economic experts predict that Minsk will be able to bring down the gas price. "To reduce prices the Belarusian side has arguments. First, the price for Belarus involves very high rates in dollar terms for the delivery from Yamal to Belarus through the territory of Russia. Second, Gazprom has repeatedly lowered the price for many of its customers, including consumers from the EEU (Eurasian Economic Union)", experts of the Belarusian Institute for Strategic Studies note. They believe Belarus will have to settle debts for the previous period.

The progress may occur in privatization issue as well. Economic problems make the government think over the selling of some part of its family silver. There is information that the management of the Belarus bank offers Lukashenka to sell a part of shares to an investor.