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Russia Cuts Drawn-Out Subsidizing Of CIS Countries - Gazprom

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  • Russia Cuts Drawn-Out Subsidizing Of CIS Countries - Gazprom

    RUSSIA CUTS DRAWN-OUT SUBSIDIZING OF CIS COUNTRIES - GAZPROM

    ITAR-TASS, Russia
    Dec 26 2006

    MOSCOW, December 25 (Itar-Tass) - Russia has been for several years
    defending its economic interests in relation to other CIS countries
    without confrontation, but firmly and consistently, a Gazprom's
    high-ranking official told Itar-Tass on Monday.

    At present, Gazprom "stops long and drawn-out process of subsidy
    assistance to other countries' economies," he said.

    "After Vladimir Putin came to power, Russia showed logic and
    consistency and became to act taking into account its own national
    interests," he said.

    "We've begun from the most difficult - Ukraine, but tackled this
    problem and stop subsidizing a foreign economy. Russia began to get
    money it should for natural resources it owns by God's will," he said.

    Later Gazprom held long and difficult talks with Armenia that is
    Russia's strategic partner facing economic difficulties. "We've found
    the way-out - lower prices plus payment in assets," the official said.

    "It took much effort to resolve this issue with Georgia, whose
    authorities preferred to turn a deaf ear on proposals Russia put
    forward back in March. Nevertheless, last Friday Gazprom signed
    contracts on gas supplies to the three Georgian companies at a price
    of 235 U.S. dollars per 1,000 cubic meters," he said.

    The talks are on with Azerbaijan - a country that has its own energy
    resources. The Russian gas giant has practically reached an agreement
    on gas exports to Moldova on the free market conditions.

    The talks with Belarus are also underway. "As Belarus is a union
    state (of the Russian-Belarussian union) it was proposed the most
    advantageous conditions - 80 U.S. dollars per 1,000 cubic meters and
    the payment of 50 percent by the Beltransgaz national gas company's
    assets," the official said pointing out that Gazprom continues to
    subsidize the Belarussian economy.

    "But Belarussian negotiators by some uncertain reasons insist on
    inter-Russian gas prices. Meanwhile, there will be no export duties
    for Russian gas. Taking such irresponsible steps Belarus poses a
    threat to Russian gas exports as of January 1, 2007," he said.

    "Russia by setting a fair gas export price carries itself with
    responsibility. The authorities are responsible for their own
    population that still has many-many problems to be tackled," the
    official said.
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