Gazprom and Belarus have signed a pricing deal for the natural gas the Russian gas monopoly supplies to the former Soviet republic.

Gazprom CEO Alexey Miller and Belarus Deputy Prime Minister Vladimir Semashko signed in Moscow on April 13 the Protocol between Gazprom and the Government of Belarus on the pricing procedure for natural gas supplied to Belarus.

The Protocol defines the pricing procedure for 2018–2019, Gazprom said in a press release. Pursuant to the document, the pricing will be based on a price formula linked to the price of gas in the Yamal-Nenets Autonomous Area.

Over the course of 2017, gas will be supplied under the existing contract.

Meanwhile, TASS quoted Russian Energy Minister Alexander Novak as saying on April 14 that the agreement made between Gazprom and Belarus and stipulating a discount for Russian gas supplies in 2018-2019 does not provide compensation of company’s losses.

“No. All the agreements signed and presented yesterday (April 13) do not anticipate any individual compensation. They are economic agreements between Gazprom and Belarus on gas supplies and possible prices and discounts available,” Novak said responding to a question whether compensation is planned to Gazprom for revenues to be lost because of the gas discount.

Russia and Belarus settled the oil and gas dispute continuing from early 2016. Minsk repaid $726 million debt for Russian gas supplies in 2016-2017 and Gazprom agreed to offer a discount to the gas price formula for Belarus in 2018-2019. Gas deliveries in 2017 are taking place on conditions of the current contract, according to the Russian news agency.

Belarus will independently decide whether it directs duty-free oil supplied from Russia to its refineries or to other countries, Novak added.

“As far as destinations of this crude oil are concerned, [it will be directed] either to refineries or to third countries. Belarus will independently handle its issue and submit its proposals for purposes of preparing an indicative balance,” Novak said.

https://www.neweurope.eu/article/gazprom-belarus-ink-gas-pricing-protocol/