Gazprom Says Belarus Gas Talks 'Not Encouraging'

Gazprom's Kupriyanov isn't optimistic of a deal (file photo) (epa)

December 30, 2006 -- Russian state-controlled gas monopoly Gazprom said today that talks with neighbor Belarus on a dispute over gas prices are "not encouraging."

Gazprom's chief spokesman Sergei Kupriyanov told Russia's "Vesti 24" television that the company was ready for a "critical development."

Gazprom is threatening to halt gas supplies to Belarus on January 1 if Minsk does not agree to pay more for gas shipments.

Gazprom wants Belarus to pay $105 per 1,000 cubic meters, up from $46 now, and is seeking a deal that would include shares in Belarus's pipeline operator, Beltranshaz.

Belarus is offering to pay $75 per 1,000 cubic meters of gas, while maintaining that any shares in Beltranshaz would have to be purchased separately.

Talks faltered on December 29 with Belarusian President Alyaksandr Lukashenka, speaking from Minsk, accusing Gazprom of "blackmail."

Meanwhile, Belarus's state oil company Belneftekhim has announced it is suspending its 2007 contracts with Russian oil companies.

Company Chairman Alyaksandr Borovsky told Belarus's official Belta news agency that the suspension is due to Russia's plans to impose new duties on oil exported to Belarus.

(AFP, Reuters)