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Gazprom pays another $625m for 12.5% of Beltransgaz shares

Oil&Gas Materials 12 February 2009 15:40 (UTC +04:00)

OAO Gazprom has paid another $625 million for a package of Beltransgaz shares equal to 12.5% of the Belarusian company's legal capital, BelTA learnt from representatives of the State Property Committee of Belarus.

The payment was made in accordance with terms of the Beltransgaz shares purchase contract of May 18, 2007.

The State Property Committee of Belarus handed over the package of Beltransgaz shares to Gazprom on February 11, 2009.

Beltransgaz's total assets are estimated at $5 billion. In 2010 Gazprom will become the owner of 50% of Beltransgaz shares. The previous payment of $625 million for 12.5% of the shares was made on January 31, 2008.

With a view to setting up a Belarusian-Russian gas transportation joint venture, on May 18, 2007 the State Property Committee of Belarus and OAO Gazprom signed a contract for selling 50% of Beltransgaz shares for $2.5 billion. Gazprom is supposed to pay $625 million for 12.5% of Beltransgaz shares every year between 2007 and 2010.

In June 2007 Gazprom made the first payment of $625 million to acquire 12.5% of Beltransgaz shares. The money was transferred to the central state budget, namely the State Special Budget Fund for National Development of the Republic of Belarus.

Beltransgaz delivers natural gas to domestic customers and transports gas via the country. The company operates around 7,000 km of gas pipelines, which diameter varies between 100 mm and 1,400 mm, and services the Belarusian section of the Gazprom-owned transcontinental pipeline Yamal-Europe.

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