Bloomberg reported that OAO Gazprom, Russia gas export monopoly reduced fuel prices for Belarus in the second half of this year and will allow the country to delay some payments after agreeing to buy the national pipeline operator.

Moscow based Gazprom said Beltransgaz, the Belarusian operator will pay USD 244.80 per 1,000 cubic meters of natural gas for second half supplies. That represents a 12% discount from previously contracted third-quarter prices and is 20%t less than the fourth quarter level.

Russian President Mr Dmitry Medvedev and his Belarusian counterpart Mr Aleksandr Lukashenko agreed to slash gas prices next year at a November 25 meeting near Moscow as the countries integrate into a single economic zone and Belarus struggles to contain a balance of payments crisis.

Gazprom said Beltransgaz the Belarusian pipeline company will pay for part of the second half gas supplies this year and the rest in monthly instalments next year.

According to the November 25 agreement Belarus will pay USD 165.60 per 1,000 cubic meters for gas deliveries next year. Belarus in return agreed to allow Gazprom to buy the half of the operator that it didn’t already own for USD 2.5 billion.

(Sourced from Bloomberg)