ALEXANDER YAKOVENKO, THE OFFICIAL SPOKESMAN OF RUSSIA'S MINISTRY OF FOREIGN AFFAIRS, ANSWERS A QUESTION FROM MAYAK AND EKHO MOSKVY RADIO STATIONS REGARDING THE BELARUS FOREIGN MINISTRY'S STATEMENT CONCERNING A DECISION TO CUT RUSSIAN GAS SUPPLIES TO THE REPUBLIC

Unofficial translation from Russian

Question: How could you comment on the statement made on November 2 by the Belarus Foreign Ministry with regard to a decision to cut Russian gas supplies to the republic?

Answer: We think that the attempt contained in the Statement of the Belarus MFA to interpret the decision to cut Russian gas supplies to the republic as "a deliberate action to exert economic pressure" has no real foundation beneath it.

Supplies to Belarus of natural gas are based on the fuel and energy resource balances, adopted each year by the sides. The plans for the current year, approved in April 2002, provide for the supply to Belarus of 16.5 billion cubic meters of gas, of which in accordance with the contracts entered into with the Belarusian side 10.2 billion cubic meters by Gazprom and 6.3 billion cubic meters by the Itera company.

As far as is known, Gazprom has met its obligations and already its quota has been practically drawn down in full by Belarusian users. As Gazprom lacks free unallocated volumes of natural gas for 2002, to increase its supplies to Belarus in excess of the previously agreed volumes of gas at concessional prices does not appear to be possible.

Considering that the price of natural gas supplied by independent suppliers, including to users in Russia itself, is determined in our country on a market basis, the Belarusian side had from the start been informed of the advisability of coming to an agreement directly with Itera company on gas supplies to the republic in the second half of 2002 on mutually acceptable terms.

It is obvious that this is a purely economic issue, and that it has to be dealt with in line with the existing accords on the formation of a common economic space, including the intergovernmental Agreement on the Expansion of Cooperation in the Gas Industry.

November 4, 2002