English

Gazprom, Beltranshaz sign agreement raising gas transit fee

Gazprom and Belarus’ gas supply company Beltranshaz have signed an additional agreement to their gas transit contract, which provides for the Russian company to pay for the transit of Russian natural gas via Belarus in 2010 at a rate of $1.88 per 1000 cubic meters per 100 kilometers, BelaPAN reports.

Gazprom earlier paid at a rate of $1.45 although an agreement stipulated the possibility of increasing the gas transit fee to $1.74 in 2009 and to $1.88 in 2010.

The Russian natural gas monopolist explained that the Belarusian partner failed to abide by its commitment to apply a wholesale markup that would allow Beltranshaz, in which Gazprom currently holds 50 percent, to operate at a profit in the domestic market.

The markup had to be equal to $10.47 per 1000 cubic meters in 2009 and $11.07 in 2010.

However, as Belarusian First Deputy Prime Minister Uladzimir Syamashka told reporters on June 23, Gazprom’s allegation was not true, as the required wholesale markup was applied last year.