Belarus insists on revision of Russian gas prices for 2020 to “correct level” – Ministry of Energy

<p> MINSK, Jun 9 - PrimePress. Belarus insists on a revision of the price of Russian natural gas for Belarus in 2020, defining its “correct and fair level,” says the press office of the Ministry of Energy of Belarus. </p> <p>   </p> <p> Minister of Energy of Belarus Viktor Karankevich, Minister of Energy of the Russian Federation Alexander Novak, Belarusian Ambassador to Russia Vladimir Semashko and Chairman of the Supervisory Board, Deputy Head of the Executive Committee, Advisor to the Chairman of Gazprom PJSC Alexander Meshkov held online talks on June 9 to discuss supplies of Russian gas in 2020. Pointing to the fact that the Russian gas prices for Europe showed a decrease in 2020 under both spot and long-term contracts, Belarus once again requested a revision of the price for Belarus to a “correct and fair level.” </p> <p>   </p> <p> “The parties exchanged views on payments for Russian gas supplied to Belarus. The latter’s position remains unchanged: in order to resolve disagreements between business entities regarding the price of gas, taking into account its calorific value, Gazprom Transgaz Belarus should provide a methodology for determining the actual average monthly calorific value of natural gas with metrological confirmation of its suitability in accordance with Belarusian legislation,” reads the statement. </p> <p>   </p> <p> Belarusian seeks to resolve the issue as soon as possible and find a mutually acceptable solution to continue cooperation in the gas sector. Gazprom said in late May 2020 that the company would be ready to start negotiations on gas supplies to Belarus from 2021 upon the repayment of Belarus’ debt for supplied gas, which is estimated at $165.6 million. </p> <p>   </p> <p> The Ministry of Energy of Belarus denies the debt, and only admits disagreements between business entities in determining the gas price with respect to its calorific value. The ministry sent proposals to Gazprom on terms of supply in 2020-2021, and requested a methodology for determining the calorific value of gas. In response, Gazprom said on June 8 that the gas price for Belarus in 2020 would not be revised, and confirmed its willingness to start negotiations on supplies in 2021, provided that Belarus respects the terms of the contract in force. </p> <p>   </p> <p> Belarus’ import of Russian gas totals 20 billion cubic meters per year. Belarus remains the second largest consumer of Russian gas after Germany. In February 2020, Miller and Belarusian Ambassador to Russia Vladimir Semashko approved the pricing procedure for the supply of Russian gas to Belarus in 2020. The price for Belarus remained at $127 per 1,000 cubic meters, which is the same as in 2019. Belarus has been insisting that Russian gas for Minsk should equal Russia’s domestic prices, as provided for by the 2011 agreement on the sale of Beltransgaz gas transmission company to Gazprom. </p> <p>   </p> <p> Former Prime Minister of Belarus Rumas said on May 14 that Belarus would try to persuade Gazprom in the May 2020 negotiations that the price of Russian gas ($127 per 1,000 cubic meters) was excessive, given that the price on European spot markets was at $80. Lukashenko stated that under current conditions, the price of Russian gas for Belarus should be $40-45 per 1,000 cubic meters, which includes logistics costs. End </p>

2020-06-10

Primepress