Lower gas prices for Belarus will strengthen Russian rouble influence in Belarus

According to preliminary information, Russian natural gas price might change for Belarus from USD 132 per 1 cubic metre to USD 100 per cubic metre and payment would be due in Russian roubles. Belarus has stopped paying for natural gas deliveries due to her disagreement with the price for gas and the dollar component of the gas transit through Russia, which did not depend on the current prices for hydrocarbons. Belarus’ current overdue payments for gas make USD 300 million. In the near future, this issue is likely to be resolved and oil supplies to Belarus are likely to resume in full. However, Belarus is likely to become more dependent on Russian rouble exchange rate fluctuations against foreign currencies, as she makes payments in Russian roubles. After the new gas price is agreed, energy prices for industrial enterprises are likely to be revised too in order to reduce costs of energy-intensive industries.