20 Dec 2016 14:39

Minsk, Moscow resolved nearly all oil, gas issues in Oct, but Russia changed its mind - Belarusian PM

MINSK. Dec 20 (Interfax) - Minsk and Moscow resolved nearly all their oil and gas issues in October, but Russia has altered its position, Belarusian Prime Minister Andrei Kobyakov said.

"We find common ground from time to time. In October we were sure that all the matters were resolved. Our partners, however, changed their mind, which required an additional round of talks," Kobyakov told Reuters in an interview, the text of which was posted on the Belarusian government's website.

Belarus and Russia have been negotiating gas since the summer of 2015.

"We expect that the active dialogue, that we are now engaged in, will help us reach a compromise. The economic conditions should be comparable or, which is better, equal for all market participants. This will allow us to continue talking about four freedoms of the economic union rather than 'picking up raisins from a bun' assuming that others will accept this," he said.

Kobyakov said Belarus and Russia would be able to reach a unanimous decision. "Our cooperation should take into account the integration component. Otherwise, integration will simply not work," he said.

He said Belarus was, first of all, concerned about the difference of prices between Belarus and Russia. "If in the regions which border Belarus the gas price is more than two times cheaper it is obvious that the competitiveness of the goods which Belarus is producing will be worse than in Russia," Kobyakov said.

"What we are saying is that we do not mind if you raise prices to levels matching Belarus. We will not ask you questions. But if you cannot raise prices at home, then adjust the prices for Belarus to yours. We have the corresponding legal framework signed in 2011," Kobyakov said.

"I cannot say that we have poor relations with Russia in the energy sector. It is not between very bad and good but rather between good and even better," he said.

Kobyakov also said Belarus had been forced to look for alternative sources of oil due to decisions by the Russian government.

"We're diversifying [supplies], it's natural for a country without enough of its own oil to meet its requirements. This is not only a tendency related to the oil supply restrictions imposed in the second half of 2016 but...a consequence of decisions that the Russian government reached," he said.

It is always important to have alternatives, and one such alternative is Azerbaijani oil, he said. This is one of the most "thought through" options, but not the only one, Kobyakov said.