The Gazprom headquarters hosted today the second meeting between Alexey Miller, Chairman of the Company's Management Committee and Vladimir Semashko, First Deputy Prime Minister of the Republic of Belarus as part of the negotiations, which were resumed yesterday in conformity with the July accords.

Summing up the meeting results the parties highlighted that negotiation of new terms and conditions for Russian gas supplies and transit was integrated with purchasing a 50 per cent stake in Beltransgaz and was quite constructive.

The parties confirmed the plans to complete the negotiations and sign a new contract for gas supply and transit 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.