Russia increases the price of gas for Belarus
The price of Russian gas for Belarus has risen by 6.81 percent from January 1, 2017, from 132 dollars to 141.1 dollars per thousand cubic meters. This was stated in a letter dated January 25, addressed by the Deputy Chairman of the Management Committee of Gazprom, Valery Golubev to Russian Energy Minister Alexander Novak, as reported by RBC news agency.
The authenticity of the letter was confirmed to RBC by officials in the Energy Ministry in Moscow and Minsk. In the letter, Golubev describes how the Russian monopolist calculates the price of gas. It is determined by a formula that takes into account the price of gas in the Yamalo-Nenets Autonomous Okrug, the cost of transportation and storage of gas in 2016, the dollar-ruble exchange rates and a correction factor that takes into account the dynamics of consumer prices in the United States.
With all these figures, the price of Russian gas for Belarus at the beginning of 2017 amounted to 141.11 dollars per 1 thousand cubic meters of gas. According to Gazprom, the price remains below the European average.
The conflict between Minsk and Moscow over the cost of gas, which Belarus considers inflated, started at the end of 2015. The parties have already reported "making progress" in the negotiations several times but have yet to come to a final agreement.