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Russia seeks market relations with Belarus in gas sector

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MOSCOW, February 16 (RIA Novosti) - A Russian diplomat reiterated Thursday that the country was seeking market-based relations with Belarus in the natural gas sector.

"Russia plans to base its relations on market prices," said Valery Mikhailov, the deputy director of a CIS department in the Foreign Ministry. "What holds for Ukraine, holds for Belarus as well."

Mikhailov's comments followed reports of possible price hikes for Russian natural gas supplies to Belarus. But, under the agreement for 2006, Russia is to supply gas to Belarus for the same price as in 2005, or $46.68 per 1,000 cubic meters.

"We should above all look after the economy. Belarus is certainly a fraternal nation and part of the [Russia-Belarus] union state, but it is still a different country, and this [market prices] is a correct and justified measure economically," Mikhailov told the lower house of parliament Thursday.

Meanwhile, Viktor Spassky, the head of the CIS economic cooperation department of the Economic Development and Trade Ministry, said that while Russia was delivering gas to Belarus at privileged prices, Belarus was establishing barriers against Russian goods.

"Hence, we offer a privileged regime, and Belarus sets more barriers for Russian goods than for European," Spassky said, adding that plans were in place to work with Belarusian organizations to avoid such discrimination.

The Russian gas monopoly Gazprom cut off gas supplies to Ukraine at the turn of the year in a long-running dispute, which has subsequently been resolved, about how much Kiev paid for natural gas supplied by Gazprom.

The company has also recently raised the gas prices for other former Soviet republics, Armenia and Georgia, and is in talks with Moldova over an increase.

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