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Belarus to pay extra $400 mln for Russian gas supplies in 1H07

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MINSK, May 25 (RIA Novosti) - Belarus is looking for ways to pay off a $400 million debt for supplies of Russian natural gas to the country accumulated since January 2007, the first deputy prime minister said Friday.

Under an agreement with Russia's energy giant Gazprom [RTS: GAZP] on December 31, 2006, Belarus is only paying 55% of the total cost of gas supplies received in the first half of the current year. The move follows Russia's decision to raise gas prices for the former Soviet republic from $46.7 to $100 per thousand cu m.

"I think the [Belarusian] government will be able to pay off the debt," Vladimir Semashko said.

"We are working on it, and we will look into different possibilities," he said, adding that the payment deadline had been set for July 23, 2007.

Last week, Gazprom signed a deal to purchase a 50% stake in Belarusian pipeline operator Beltransgaz for $2.5 billion.

Gazprom will make equal payments in four stages from 2007 to 2010, acquiring a 12.5% stake in Beltransgaz at each stage, which will ensure stable gas supplies to Central and Western European consumers.

Semashko also said Belarus would continue buying oil from Russia after the proposed state-controlled Belarusian Oil Company is established in June of this year.

The new wholesale company will buy oil at discount prices, refine it and sell petrochemical products to consumers from different parts of the world, he said.

"No matter what they say about Russia after it raised tariffs for oil and gas [exports], we are still buying oil [from Russia] at favorable conditions," the Belarusian official said.

At present, Russia sells oil to Belarus for $370 per ton, while the average price for crude on global markets is about $500 per ton, he said.

Russia earlier said it would consider granting a $1.5 billion stabilization loan to Belarus in the next few months to cushion the gas price hike in December 2006, which sparked an energy dispute between the two countries and triggered more accusations in Europe that Russia is using oil and gas as a political weapon.

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