The Gazprom headquarters hosted today another meeting between Alexey Miller, Chairman of the Company's Management Committee and Vladimir Semashko, First Deputy Prime Minister of the Republic of Belarus.

The parties resumed the negotiations on terms and conditions for Russian gas supplies and transit placing an emphasis on the gas price level. Under the agreements reached in July, the issues were interlinked with setting the parameters for acquisition of a 50 per cent stake in Beltransgaz  by Gazprom.

Alexey Miller and Vladimir Semashko highlighted the efficiency of the ongoing dialogue and expressed confidence that it would be possible to finish the negotiations and to sign the new gas supply and transit contract in early December 2011.

Background

On December 31, 2006 Gazprom and Beltransgaz signed the gas supply and transit contract for 2007–2011. In particular, starting from January 1, 2008 the contract set forth the price formula (corresponding to the price formula for Russian gas supplies to Europe) and the discount rates for the price between 2008 and 2010 (0.67, 0.8 and 0.9 respectively).

In August 2011 Vladimir Putin, Prime Minister of the Russian Federation tasked the Russian Energy Ministry and Gazprom to determine the amount of a discount rate for the gas price in Belarus since 2012.

Gazprom currently holds a 50 per cent stake in Beltransgaz.