"We are practically satisfied with the negotiation progress and the agreement to set the gas price for Belarus at $75 per 1,000 cubic metres", said the head of Government.

He pointed out, the key problem of the discussion is the gas price for Belarusian industries, which maintain industrial cooperation with Russia. Those are mainly high-technology companies - mechanical and machine-tool engineering ones. A price hike will undoubtedly be a trial for the Belarusian companies and Russian ones and can destroy the industrial cooperation they have been establishing for years.

"Gazprom's proposals as a monopolist are worth paying attention, but from the point of view of Belarus' and Russia's economies we believe that the fine-tuned economy of these companies and the creation of new jobs are more important", underlined Sergei Sidorskiy.

Another important issue the two sides will have to agree on is the price for OAO Beltransgaz, added the Premier. He reminded, the independent appraiser estimated Beltransgaz assets value as high as $5.3 billion. Gazprom suggested that starting January 2007 the Belarusian side should pay for the gas supplies with money and with a 50 per cent package of Beltransgaz shares.

"We believe the 50 per cent of Beltransgaz shares have to be made part of Belarus budget according to our laws. After that within a year the registered capital of the joint venture should be formed", specified the Prime Minister.

"Thereby our views on these issues in the negotiations are close. In the next few days we should produce a result both the sides will be satisfied with", concluded Sergei Sidorskiy.

By Council of Ministers of the Republic of Belarus