RIA Novosti cited Mr Vladimir Putin Russian Prime Minister said after a meeting with Belarus' President Mr Alexander Lukashenko that Belarus will start paying the same gas price as Russian consumers, benefitting from an integration discount by 2014.

Mr Putin said "This is an important question which will regulate our relations with Belarus for years to come and will ensure a secure and unquestionable transit of our energy to consumers in Western Europe through the Belarusian territory."

He said that Belarus, a member of the Union State of Russia and Belarus and a Customs Union between Russia, Belarus and Kazakhstan will pay USD 164 for 1,000 cubic meters of Russian gas in the first quarter of 2012 compared to an average gas price for Europeans of USD 400.

He added that "This is a serious discount which will allow Belarus to save no less than USD 2 billion. He also said Russian gas giant Gazprom will acquire 100% of Belarus Beltransgaz in which it already owns a 50% stake.”

Mr Putin also said Russia will provide a USD 10 billion 15 year loan to Belarus to build a nuclear power plant which is to be built by 2017. He said that "We have agreed and today corresponding documents will be signed to provide Belarus with credit for this purpose."

Russia current five-year gas agreement with Belarus expires on January 1. Markets have been following the talks, as previous gas disputes between Russia and transit countries have seriously hit energy supplies to Europe in the middle of winter.

Gazprom plans to provide 152 billion cubic meters of gas to the European market this year some 20% of supplies running through Belarus' territory. Russia also agreed to restructure Belarus' gas debts which arose from insufficient payments in 2011.

(Sourced from RIA Novosti)