Аlexander Novak
Russia’s Energy Minister Alexander Novak has called the talks on resolving the dispute around Belarus’ gas debt ‘rather tough’ though he said he hopes the issue will be settled soon.
“Various options are under discussion. So far, no final decision has been proposed. Hopefully such decisions will follow soon,” state-run news agency TASS quotes the minister.
“The condition for the implementation of the compromise agreement is the full discharge of the debt that has accumulated during 2016 and the first months of 2017,” Novak told RBC TV.
On Monday Russia’s Deputy Prime Minister Arkady Dvorkovich said Belarus’ debt for Russian gas supplies reached $600 mln.
The oil and gas conflict between Russia and Belarus has been running on over a year. Two capitals failed to come to terms over payments for Russian gas delivered in 2016. Minsk was indignant at the fact that Russian consumers bought gas at subsidized prices. Belarus is seeking the same subsidies for domestic enterprises so that they could compete on the Russian market.
The conflict erupted as Belarus started to pay $73 per thousand cubic meters while the contract price for the Russian gas was $132.
In October, Belarus was late in paying the debt for gas. The government was to transfer to “Gazprom” $281 million. Later, it became known that Minsk had not transferred money for Russian gas, as it expected signing of ‘some’ agreements.
Against the backdrop of the gas dispute and a default on deliveries of petroleum products, Russia reduced the supply of oil to Belarusian refineries by 5.25 mln tons, which crushed the export of Belarusian oil products. In response to the Russia’s measures, from October 11, Belarus wanted to raise tariffs for the transit of Russian oil through Belarusian territory by 50%. Later this resolution was canceled in exchange for the restoration of the full volume of oil supplies from Russia.
- Knife in the back for Kyiv, fraternal kisses for Moscow: Belarus in search for oil alternatives (ENG video)
- Frenemies? Russia may sue Belarus for raising oil transportation tariffs
- ‘Concessions out of question’. Azerbaijan refuses to cut down oil price for Belarus
The ‘gas war’ has already cost Belarus 0.3% of GDP.
belsat.eu, following «РБК», photo by Russia’s Energy Ministry press service
