Head of Gazprom-Linked Belarus Bank Lists Payment Options for Gas Debt

Text of report in English by Belarusian news agency Belapan

Minsk, 1 August. Minsk has several options to pay the debt that it owes to Russian natural gas monopoly Gazprom for supplies in the first half of this year, Viktor Babariko, head of Belgazprombank’s board, told reporters in Minsk on Wednesday.

Belarus may either use its gold and foreign currency reserves, or obtain foreign funds also from Russia, or sell a stake in [pipeline operator] Beltranshaz earlier than scheduled, or deposit it with a financial institution or pay the debt in Belarusian roubles if “the Russian side finds where to use this money”, Babariko said, suggesting that Gazprom might use the Belarusian currency for financing the purchase of a Beltranshaz stake.

Belgazprombank is a Minsk-based financial institution in which Russia’s natural gas giant Gazprom and Gazprombank hold a majority stake.

Babariko said that his bank was an outsider not affected by disputes between Minsk and Moscow, as well as between Beltranshaz and Gazprom.

Russian Gazprom said earlier today that it would reduce natural gas supplies to Belarus by 45 per cent from Friday [3 August].

The statement came after Belarus missed a July 23 deadline for the payment of part of a 456m-dollar debt for Russian gas supplies in the first half of this year.

Belarus now must pay 100 dollars for 1,000 cu.m. of Russian gas, up from the old price of 47 dollars. However, it was agreed that Minsk would pay just 55 dollars for 1,000 cu.m. in the first half of the year with the difference of nearly 500m dollars to be paid by July 23.

Belarus pledged to sell Gazprom half the stakes in Beltranshaz. Earlier this year, the Russian monopoly paid 625m dollars for the first 12.5-per-cent stake in Belarus’ gas pipeline network.

First Deputy Prime Minister Uladzimir Syamashka said this past May that the 625m dollars would not be spent toward payment of the country’s gas debt to Gazprom.

“This money should work for the development of the economy,” he said and added that the amount would go to the government’s National Development Fund, which accumulates money for investment projects.

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