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Gazprom set to raise gas price for Belarus to market level in 2011

Gazprom plans to raise prices for Armenia, Belarus and Moldova to the market level in 2011, the RBK news agency reported with reference to Andrei Kruglov, deputy chairman of the Russian gas giant's board, on Friday, as quoted by BelaPAN.

"As for pricing, one may say that the government is sticking to a plan of raising gas prices. And we suggest that the steady increase in gas prices will continue," he was quoted as saying at a conference.

Gazprom raised gas sales in former Soviet countries by 40 percent year-on-year in the first seven months of this year, according to the executive.

Speaking to reporters in June, Deputy Prime Minister Uladzimir Syamashka said that Belarus was determined to continue negotiations with Russia to try to secure a lower gas price this year.

"We need to look for compromises. We need prices that are close to, comparable with Russia's [domestic] gas prices," the vice premier said.

He noted that Belarus was ready to accept a price that would be slightly higher than that in Russia.

Gazprom raised the price for Belarus to $169 for 1000 cubic meters in the first quarter of this year and to $185 in the second quarter. The price was expected to increase to $193 or $194 in the third quarter.