ADVERTISEMENT

Belarus offers Gazprom free gas transit if it builds pipelines

Energy Trade

Belarusian President Alexander Lukashenko proposed that Russia start to build a second leg of a pipeline delivering natural gas to Europe, and offered free transit for five years.

The Yamal-Europe pipeline runs from northwest Siberia to Russia’s border with Belarus, and from there extends 2,000 km (1,240 miles) to Germany, via Poland. “Start building the second line, and if you are afraid it will be unprofitable, we will exempt you from transit taxes for five years,” the president told a news conference. The addition of a second leg to the Yamal-Europe pipeline has been discussed since 2005, to meet Europe’s growing gas demand.

The Belarusian segment of the Yamal-Europe pipeline is 575 km (360 miles) long, and has capacity of around 33 billion cubic meters per year. Gazprom’s May 18 deal to buy 50% in Belarusian pipeline operator Beltransgaz for $2.5 million in four equal installments by 2010 is expected to tighten the Russian gas monopoly’s operational control over the Yamal-Europe pipeline, thus far its main export route to Central Europe. (rian.ru)

ADVERTISEMENT

Digitization, sustainability among characteristics of future... Analysis

Digitization, sustainability among characteristics of future...

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.