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Gazprom enhances participation in Beltransgaz

This week the Russian gas giant that has recently made the last payment to the Belarusian side within the framework of purchase of a 50% block of shares in Beltransgaz, is to get an additional seat in the supervisory board (board of directors) of this company. Thus, the number of Russian and Belarusian representatives in Beltransgaz's board of directors will become equal - four people from each side.

Yet, there are serious concerns as this deal has not brought (and there is no guarantee it will bring) real benefits to Gazprom, because the Belarusian side exercises operative control over Beltransgaz, although the Russian firm has spent $2.5bn on the Belarusian company. New people in the board of directors are unlikely to introduce some fundamental changes due to peculiarities of work of foreign investors in Belarus who strongly depend on Alexander Lukashenko's current policies.

The Belarusian president is unlikely to allow transfer of real control over Beltransgaz to Gazprom, as in this case he will lose his main lever of pressure on Russia at any energy and political negotiations. Gazprom will get only half of dividends from transit payments but Lukashenko at any moment can make up some new tax on the company, e.g. increasing land tax rates.

By Stanislav Mitrakhovich, NESF leading expert


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Analytical series “The Fuel and Energy Complex of Russia”:

State regulation of the oil and gas sector in 2023, 2024 outlook
Gazprom in the period of expulsion from the European market. Possible evolution of the Russian gas market amid impediments to exports
New Logistics of Russian Oil Business
Russia’s New Energy Strategy: on Paper and in Fact
Outlook for Russian LNG Industry

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