Eurasian Integration Yearbook 2012

2011: Data and ReviewsBelarusian gas debt increasesNovember 15, 2011Gazprom claims that in the third quarter of 2011 Belarus paid 12% less thanthe contract price for its gas deliveries. In February-April, and in July 2011,Beltransgaz “violated the terms of its contract” in paying for Russian gas,Gazprom claims. Beltransgaz asked Gazprom if it could defer payment for gasdelivered in the third quarter of 2011 and pay $245 per 1,000 m 3 (the contractprice for the second quarter of 2011). The contract price for the third quarterwas supposed to be $279.16. With a total of 4.231 billion m 3 of gas deliveredto Belarus during the third quarter of 2011, the underpayment is about $144.5million.If Belarus were to continue to pay $245 per 1,000 m 3 for gas in the fourthquarter, the country’s debt may top $490 million by year-end, given thatGazprom was due to supply Belarus with a total of 6 billion m 3 during the fourthquarter at a forecast price of $303 per 1,000 m 3 (based on the latest version ofthe company’s budget for 2011).Note:Gazprom and Beltransgaz dispute gas payment almost every year. The latest conflict began after Belaruscontinued to pay average 2009 gas prices during the first four months of 2010, instead of the higher contractprice, which led to a debt of around $190 million. Gazprom threatened to cut supplies and Minsk brought upthe issue of Gazprom’s debts for gas transit. Gazprom carried out its threat to cut gas supplies to Belarus for afew days, which meant Europe also faced a reduction in its gas supplies. Fortunately, the conflict was resolvedbefore the EU was affected. This year’s difficulties have not triggered an open conflict between the states. ByFebruary, Beltrangaz owed Gazprom $70 million but it paid the debt in April, Gazprom stated in its report forthe second quarter of 2011.Belarus sells Beltransgaz to GazpromNovember 25, 2011VedomostiIntergovernmental agreements on Gazprom’s acquisition of a second 50% stakein Beltransgaz for $2.5 billion were signed during the session of the SupremeState Council of the Union State of Russia and Belarus at the Gorky residencenear Moscow. Gazprom purchased the first 50% stake in Beltransgaz backin 2007 for the same price. Along with $2.5 billion payment for Beltransgaz,Belarus was granted a substantial discount on gas prices (in 2012 Belarus willpurchase gas at $166 per 1,000 m 3 compared to the current $250) and a loan of$10 billion for 15 years for the construction of a nuclear power plant. The dealamounted to a total of $12.5 billion, and with the gas discounts Belarus will beable to reduce its current account deficit from $7 billion to $4 billion per year.Kommersant, Expert Online, Vedomosti262 EDB Eurasian Integration Yearbook 2012