Gazprom: in the first quarter of 2010 gas price for Belarus can total $160 per one thousand cubic metres

As is reported by Prime-Tass with the reference to some close to Gazprom source, the price for Russian gas sold to Belarus in the first quarter 2010 can total $160. A more accurate cost will be calculated as soon as the value of oil products basket is determined. Gas prices for both Europe and Belarus depend on this value.

As is reported by Prime-Tass with the reference to some close to Gazprom source, the price for Russian gas sold to Belarus in the first quarter 2010 can total $160. A more accurate cost will be calculated as soon as the value of oil products basket is determined. Gas prices for both Europe and Belarus depend on this value.

We would remind you that in the first quarter of the current year the price for Russian gas sold to Belarus made about $210, in the second quarter – about $158, in the third – about $115. It should be noted that the price for the fuel is reckoned on the basis of the expected average annual cost of $150 per one thousand cubic metres. This sum of money was determined on the basis of a verbal arrangement between Alexander Lukashenko and Dmitri Medvedev which so far has not been documented. Final recalculation is to be made at the end of the year.

The price for Russian gas sold to Belarus is calculated in accordance with signed in 2006 bilateral contract on the basis of the average European cost of gas after deduction of transportation expenses and customs duties inclusive of a reducing factor which annually changes upward (in 2009 it makes 0.8, in 2010 – 0.9). By the year 2011 the parties should switch over to free market pricing but Belarus suggested procrastinating transition period until 2014-2015 after Russia had decided to postpone the transition of internal customers to market prices.