You're reading: Belarus to get gas at ‘integration’ discount from 2012

Moscow, August 15 (Interfax) - Belarus will receive Russian gas at a discount from 2012 in view of its membership of the Customs Union, Russian Prime Minister Vladimir Putin said at a meeting with his Belarusian counterpart, Mikhail Myasnikovich.

"In Russia it has been decided to introduce an integration reducing coefficient to the gas formula for Belarus from next year," Putin said.

He said the size of the discount would be decided at talks between companies from both countries.

"The level of the coefficient will be decided by agreement between commercial entities. We should end up with conditions for fair competition. This can’t be done in one fell swoop. The parameters need to be finalized during commercial negotiations. But we have approved that approach," Putin said.

The price negotiating process "will be synchronized with the acquisition by Gazprom of a second stake in Beltransgaz," Putin recalled.

Mikhail Myasnikovich said the sides had agreed that issues regarding oil and gas purchases in 2012 would be settled over the next month.

He thanked Putin for what he described as a "gift" in the form of a gas discount and said he hoped the coefficient would be below 1 next year.

Putin said in reply that "this is direct aid and support, but it isn’t really a gift." "When the opportunities for Russian companies are broadening on the Belarusian market, they are prepared to make concessions to their Belarusian partners," he said.

This is the common position of the Russian leadership, both its president and prime minister," Putin said.