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Russia quadruples Belarus gas prices; crisis fears grow
The Irish Times ^ | Tue, Apr 04, 06 | Chris Stephen

Posted on 05/13/2006 7:23:10 AM PDT by A. Pole

RUSSIA: Russia is imposing a quadruple hike in gas prices to neighbour Belarus, triggering fears of a crisis similar to the stand-off earlier this year with Ukraine.

State-owned gas giant Gazprom has told Belarus that it must pay world prices for its gas from December if it wants to continue getting supplies.

Ukraine's failure to pay a similar gas price hike on January 1st saw Russia turn off the taps, triggering a crisis that spread across much of Europe.

Critics say the demand, on one of Europe's poorest countries, is being used as leverage for Gazprom to get control of Belarus's state-owned gas pipelines.

The move is likely to sharpen anxieties in EU countries already concerned that the Kremlin may be using gas supply as an economic weapon.

The price increase for Belarus is unusual because, unlike Ukraine, its president Alexander Lukashenko is a staunch ally of Russia.

Mr Lukashenko won re-election last month in a vote condemned as fraudulent by the EU and the US, but welcomed as fair by Moscow.

Gazprom insists the demand is based on commercial reality: Belarus pays $47 for a cubic metre of gas now, compared to the European price of $230, under a subsidy contract that runs to the end of the year.

The company says that, as with Ukraine, it wants to end the practice of offering subsidies to former Soviet states to bring it into line with modern market practices.

Gazprom spokesman Sergei Kupriyanov said the demand was being made now to give Belarus time to adjust. "So that that issue of gas prices for Belarus should not become the topic of New Year's Eve television programmes, we want to agree in advance how to work next year," he told Russian television.

Belarus has made no official comment on the demand, with Mr Lukashenko a virtual recluse since his March 19th election victory. Diplomats in Moscow say that if the Belarus leader sells his distribution network to Gazprom, he is likely to be offered a fresh subsidy agreement, in part because his impoverished country cannot pay the increase.

[...]


TOPICS: Business/Economy; Foreign Affairs; Russia
KEYWORDS: belarus; energy; europe; gas; oil; poland; polish; putin; russia; trade; ukraine
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To: Mazepa

How Ukrainian refineries ended in the hands of Russian companies?


21 posted on 05/13/2006 10:19:46 AM PDT by Lukasz
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To: Atlantic Bridge
Anyway I find it interesting that Gasprom is kicking Luka's a** now

Why? He already “won” the elections, it is good moment.

if they even forget about their old friend in Belarus.

All this pan-Slavic/”socialist brothers” BS from their mouths stinks like hell. Russia never had any friends, only slaves and enemies. Well maybe Germany hehe

22 posted on 05/13/2006 10:28:35 AM PDT by Lukasz
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To: Lukasz
Well maybe Germany hehe

Joker...

Uhh - I forgot about the chairman -geez chairwoman:

She probably slept too often with Puttie.

23 posted on 05/13/2006 10:33:59 AM PDT by Atlantic Bridge (De omnibus dubitandum.)
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To: Atlantic Bridge

new chairman of what? You mean Schroeder?


24 posted on 05/13/2006 10:34:57 AM PDT by Lukasz
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To: Lukasz
Chairman of the new gas monopoly in Germany after Gasprom has bought RWE, Eon and BASF. This is the point where they are able to earn the big money. Who cares about Belarus, if they can dictate the consumer prices in Germany, the by far biggest market for them.

Puttie told Angela Merkel recently in Tomsk that he feels pissed that Russian investors (who else than Gasprom) are not able to get into the direct business with German consumers. This is the plan and Schroeder helped to realize it. Therefore he is a complete traitor of his compatriots. Eastern Europe plays only a sad underpart in this play.

As I said I have no idea how to get out of this mess. Do you?

25 posted on 05/13/2006 10:44:48 AM PDT by Atlantic Bridge (De omnibus dubitandum.)
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To: Lukasz

Bad government policies- Kuchma is a retarded guy.


26 posted on 05/13/2006 10:48:08 AM PDT by Mazepa
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To: Mazepa
I came to terms with the more expensive Russian gas for Ukraine- no problem. I do have a problem with Ukraine subsidizing Russia by providing cheap rent for the Black Sea Fleet.

I can't blame you for not liking the cheap rent Russia pays for the harboring their Black Se Fleet. However, under the terms of the agreement you received Russian territory, which will be returned to Russia if you negate the treaty. In other words, you were paid not only with rent, but also with territory.
27 posted on 05/13/2006 11:01:43 AM PDT by GarySpFc (Jesus on Immigration, John 10:1)
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To: Lukasz; Romanov; x5452
BS they always want “free market price” (in fact there is no free energy market) and when pressured government give up some state owned company then they forget about “free market” stuff. Educate yourself if you want seriously discuss Belarusian affairs.

You can show your East European socialism potty mouth for capitalism all you like, but it is a free market. Switch to another form of energy if you do not like the rate of $230 for Russian natural gas. We pay $461 in the US, and those who do not like the rates switch to propane or electricity, but then they see how much cheaper natural gas is as a form of energy and regret their move.

I have invested in natural gas in the past, and know it takes huge investments and a willingness to risk it to develop new wells when production from old wells declines. Add to that the costs of the infrastructure, which is something a socialist like yourself will never understand.
28 posted on 05/13/2006 11:12:40 AM PDT by GarySpFc (Jesus on Immigration, John 10:1)
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To: GarySpFc; Mazepa
However, under the terms of the agreement you received Russian territory, which will be returned to Russia if you negate the treaty. In other words, you were paid not only with rent, but also with territory.

I read recently that this agreement is invalid according to the Ukrainian constitution. If so the Russians are there illegally.

29 posted on 05/13/2006 11:14:33 AM PDT by Lukasz
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To: GarySpFc

I reapeat educate yourself and don't waste my time.


30 posted on 05/13/2006 11:16:00 AM PDT by Lukasz
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To: Lukasz

Gosh, who do you root for when two dictators have a pissing match?
Okay, I'll take the Mussolini Belarus guy, just for the hell of it.


31 posted on 05/13/2006 11:24:00 AM PDT by romanesq (.)
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To: A. Pole
Russia is telling Belarus you want subsidized gas, give us control over your gas infrastructure. Or be prepared to pay market prices for the gas.

(Denny Crane: "Every one should carry a gun strapped to their waist. We need more - not less guns.")

32 posted on 05/13/2006 11:35:00 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: Atlantic Bridge

For the beginning you could collect all the materials how badly planned pipeline will affect the Baltic Sea. Then under pretext of EU ecologic regulation cancel the deal. Of course I don’t believe this to happen as well as I don’t believe that Merkel ever was against.


33 posted on 05/13/2006 11:40:52 AM PDT by Lukasz
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To: A. Pole
All former Soviet republics can clearly see just what they will get in return for siding with Russia: absolutely nothing.

Ukraine and Georgia may have price increases, but the alternative is price increases, loss of sovereignty and independence, and Russian subjugation. Pity poor Belarus.

34 posted on 05/13/2006 12:07:46 PM PDT by Tailgunner Joe
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To: Tailgunner Joe
Pity poor Belarus.

I don't pity Belarus one bit. They will tire very quickly of Lukas when he cannot afford to give them their good salaries. I think this is the best way to get rid of the dictator.
35 posted on 05/13/2006 12:33:06 PM PDT by GarySpFc (Jesus on Immigration, John 10:1)
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To: lilylangtree

Where do you folks crawl out of?

Russia seized YUKOS for MASSIVE TAX EVASION and violating NUMEROUS privatization laws.

Yukos was a corrupt oligarchy, run by a courrpt wanna be politician who was in bed with Soros and Open Society.

Why is it every time I turn around Freeps are hapy to support thrid way socialism bought and paid for by Soros in East Europe??!?!!


36 posted on 05/13/2006 1:47:46 PM PDT by x5452
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To: Lukasz

You're defending Lukashenko and Soviet Era pricing.

And I thought I'd seen everything.


37 posted on 05/13/2006 1:49:00 PM PDT by x5452
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To: Mazepa

That port belongs in Russia as does Crimea and if any of you galacians try a rent hike the vastly superior Russian military will take it back.

The only reason either fall in Ukraine's boundries is generocity of Soviet Era ethnic Ukranian leaders,


38 posted on 05/13/2006 1:50:20 PM PDT by x5452
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To: Atlantic Bridge

Are you wishing Lukashenko will remain in power buy paying a fraction of what Germany does for gas and reselling it to Europe?!?!


39 posted on 05/13/2006 1:51:40 PM PDT by x5452
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To: lilylangtree
"Didn't the Russian govt seize Gazprom and put its owner behind bars about two years ago? If so, sounds like a move by Russia's Putin."

Yup. He's got to get the bucks for the new 'arms race - cold war' with the US that he spoke of last week.

40 posted on 05/13/2006 1:58:45 PM PDT by blam
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