The Gazprom Headquarters has hosted today a working meeting between Alexey Miller, Chairman of the Management Committee and Vladimir Semashko, First Deputy Prime-Minister of the Republic of Belarus.

The parties discussed major issues related to bilateral cooperation in the gas sector.

The parties confirmed the adherence to the terms and conditions of the contract on gas supply and transit during 2007-2011 signed between Gazprom and Beltransgaz on December 31, 2006. The parties emphasized that Gazprom gas price for Belarus according to the contractual price formula tied to the prices for oil products in Europe would be estimated at $ 119 in the 1Q of 2008.

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On December 31, 2006, Gazprom and Beltransgaz signed a five-year Gas Supply & Transit Contract for 2007 through 2011. The parties identified the price of Russian gas for 2007 (US$ 100 per 1,000 cu m) and the pricing formula starting from January 1, 2008 (which is in line with the Russian gas supply pricing formula for Europe).

The document stipulates the tariff rate for gas supply by the Beltransgaz owned networks (US$ 1.45) and the service charge for the Yamal-Europe gas pipeline operation (calculating using the formula).

On December 31, 2006 Gazprom and the Government of Belarus signed also the Protocol stipulating that Gazprom would pay US$ 2.5 bln in equal portions for a 50% stake in Beltransgaz for over the next four years.

In May 2007 Gazprom and the State Property Committee of the Republic of Belarus have signed a purchase and sale agreement for Beltransgaz shares. In June Gazprom purchased a 12.5 per cent stake in Beltransgaz for US$ 625 mln.