Belarus, Russia may agree on gas price alignment by Jan 1, 2022 – Semashko

<p> MINSK, Jul 1 - PrimePress. Belarus and Russia can agree on leveling the prices of Russian gas for Belarus and the Smolensk Region of Russia, which now stands at around $70 per 1,000 cubic meters, by January 1, 2022, Ambassador of Belarus to Russia Vladimir Semashko told reporters on July 1. </p> <p>   </p> <p> “Frankly speaking, we are not satisfied with the current price [$127 per 1,000 cubic meters]. We see that our position is understood, and we believe that the goal that we set to ourselves in 2017 [bringing the gas price closer to the price for the Smolensk Region of Russia] may be achieved by January 1, 2022,” BelTA state newswire quotes Semashko as saying. </p> <p>   </p> <p> He said the intergovernmental agreements signed in November 2011 on the sale of Beltransgaz covered pricing and gas transit. “They were signed with a view to obtain gas prices if not equal, then very close to Russia’s domestic ones,” Semashko said. </p> <p>   </p> <p> The agreements were fixed by the protocol to the intergovernmental agreement on gas supplies signed in April 2017. </p> <p>   </p> <p> “It clearly determined that in order to achieve comparable prices, we were supposed to draft a Union State pricing methodology by the end of 2018, in fact, a methodology for a single market launch, and finish domestic approvals before January 1, 2020 and sign an agreement on gas pricing before July 1, 2019 to reach an open-ended agreement. We have repeatedly proposed different methods, but, regretfully, this agreement was not reached,” said Semashko. </p> <p>   </p> <p> As a result, the price of gas for Belarus at the Russian border is twice the price for the Smolensk Region. </p> <p>   </p> <p> As reported, in late May, Gazprom stated its readiness to begin negotiations on gas supplies to Belarus from 2021 onwards upon resolution of the debt issue. Gazprom estimates Belarus’ debt for supplied gas at $165.6 million. </p> <p>   </p> <p> The Ministry of Energy of Belarus says there is no such debt, but there is a disagreement between business entities on determining the cost of gas “taking into account its calorific value.” The ministry sent proposals to Gazprom on a revision of the terms of gas supplies in 2020 and the pricing methodology for the period from January 1, 2021. </p> <p>   </p> <p> The ministry said that disagreements on determining the cost of supplied natural gas based on its calorific value arose between Beltopgaz, Naftan refinery and Gazprom Transgaz Belarus. To resolve these disagreements, the Ministry of Energy of Belarus considers it necessary that Gazprom Transgaz Belarus provide Beltopgaz with a methodology for calculating the actual average monthly calorific value of natural gas with metrological confirmation of its suitability in accordance with Belarus’ legislation. </p> <p>   </p> <p> 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. After oil quotations dropped in 2020 and so did gas prices on the European spot markets (to $80 per 1,000 cubic meters), Lukashenko argued that, given the global situation, the Russian gas tariff for Belarus should be at $40-45 per 1,000 cubic meters, including logistics costs. End </p>

2020-07-02

Primepress