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 RUSSIA IN FACTS
18 February 2004 10:17
Russia-Belarus gas contracts expire
Contracts for Russian gas supplies to Belarus expired at 20:00 Moscow time on Tuesday. Trans Nafta already said it had stopped its gas supplies to Belarus. Another Russian producer, ITERA, stopped supplies on February 12, the Nezavisimaya Gazeta reports. Gazprom, Russia’s gas giant, stopped its supplies earlier.

On February 1, Belarus stopped buying Russian electricity. Russia raised prices 28 percent, and Belarus decided it was too much. The Belarusian government turned to Ukraine and prepared to sign a contract to buy 600m kWh. Minsk was ready to pay $0.016 per 1 kWh, which is below average wholesale prices, according to a source in Ukrinterenergo. The talks failed.

Lithuania remains the only country selling electricity to Belarus. But these deliveries are also controlled by Russia (through INTER RAO UES). Belarus wanted to agree with Lithuania on direct supplies, without Russia. However, Lithuania declined the offer, saying that it does not have available resources as it supplies everything to Russia, according to Vladimir Korduba, spokesman for Belenergo.

Natural gas and electricity supplies to Belarus are a powerful lever to put pressure on Minsk, the newspaper says. In an effort to lessen this dependence, Belarus turns to unthinkable options.

So, the Geological Institute of the National Academy pins hopes on geothermal springs, which it says can cover 30-50 percent of the country’s thermal energy needs. Belarusian scientists calculated that an average geothermal plant can generate energy sufficient for a town with a population of 100,000. Such a plant, which will take about a year to build, will cost $10m to $15m, and it seems Minsk does not have the money.


[RBCTop]
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