Today the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Vladimir Semashko, First Deputy Prime-Minister of the Republic of Belarus.

The meeting examined general issues for gas cooperation. The parties also discussed the results of independent market value assessment of Belarus gas transportation facilities and Russian gas delivery terms in 2007.

Reference:

Gazprom has switched to market cooperation terms with all countries which buy Russian gas excluding Belarus. Belarus remains the only country keeping the Russian gas prices at low level in 2006. That was related to a number of Belarus state decisions which coordinated with Gazprom economic concerns. In particular, Gazprom acquired property rights for Belarus section of the Yamal-Europe gas pipeline as well as the land under the pipeline was long-term leased out to the company. In this regard, Belarus will switch to market prices complying with European price level in 2007.

On December 27, 2005 Gazprom and Beltransgaz signed the Agreement on gas transit and supply for 2006. Gas price and transit tariff for 2006 coordinate the same terms in 2005. Pursuant to the document, Gazprom will supply 21 bcm of gas in 2006, 1.5 bcm would be supplied if it is practically feasible.

The evaluation of Belarus gas transportation system facilities was provided by ABN Amro Bank. These assets are supposed to be used as payment for the gas to be delivered.