Russia Cuts Drawn-Out Subsidizing Of CIS Countries – Gazprom

RUSSIA CUTS DRAWN-OUT SUBSIDIZING OF CIS COUNTRIES – GAZPROM

ITAR-TASS, Russia
Dec 26 2006

MOSCOW, December 25 (Itar-Tass) – Russia has been for several years
defending its economic interests in relation to other CIS countries
without confrontation, but firmly and consistently, a Gazprom’s
high-ranking official told Itar-Tass on Monday.

At present, Gazprom "stops long and drawn-out process of subsidy
assistance to other countries’ economies," he said.

"After Vladimir Putin came to power, Russia showed logic and
consistency and became to act taking into account its own national
interests," he said.

"We’ve begun from the most difficult – Ukraine, but tackled this
problem and stop subsidizing a foreign economy. Russia began to get
money it should for natural resources it owns by God’s will," he said.

Later Gazprom held long and difficult talks with Armenia that is
Russia’s strategic partner facing economic difficulties. "We’ve found
the way-out – lower prices plus payment in assets," the official said.

"It took much effort to resolve this issue with Georgia, whose
authorities preferred to turn a deaf ear on proposals Russia put
forward back in March. Nevertheless, last Friday Gazprom signed
contracts on gas supplies to the three Georgian companies at a price
of 235 U.S. dollars per 1,000 cubic meters," he said.

The talks are on with Azerbaijan – a country that has its own energy
resources. The Russian gas giant has practically reached an agreement
on gas exports to Moldova on the free market conditions.

The talks with Belarus are also underway. "As Belarus is a union
state (of the Russian-Belarussian union) it was proposed the most
advantageous conditions – 80 U.S. dollars per 1,000 cubic meters and
the payment of 50 percent by the Beltransgaz national gas company’s
assets," the official said pointing out that Gazprom continues to
subsidize the Belarussian economy.

"But Belarussian negotiators by some uncertain reasons insist on
inter-Russian gas prices. Meanwhile, there will be no export duties
for Russian gas. Taking such irresponsible steps Belarus poses a
threat to Russian gas exports as of January 1, 2007," he said.

"Russia by setting a fair gas export price carries itself with
responsibility. The authorities are responsible for their own
population that still has many-many problems to be tackled," the
official said.