Belarus increases debt for gas to Russia
In the third quarter of 2011 Belarus owes Russia about $ 140 million for delivered gas and expects to pay for it $ 245 instead of $ 280. The increased debt to Gazprom is one of the ways to artificially reduce the foreign currency demand at the foreign exchange, and to postpone further devaluation of the ruble.
The Beltransgaz requested the Gazprom to defer payments for the third quarter of 2011 gas deliveries and to pay $ 245 per c.m. (the price applied to the second quarter of 2011) with the contract price for the third quarter of $ 279. During the third quarter of 2011 4.231 billion cubic meters of gas have been delivered to Belarus, therefore the underpayment is about $ 140 million.
Against the background of long discussions about the draft socio-economic development plan and 2012 budget negotiations the Belarusian government has not dared to name the target price of gas for the next year. As a result, preliminary price has been voiced by the Russian Ambassador to Belarus Alexander Surikov: USD 180 per c.m. He noted, however, that the gas price had not yet been finalized.
The increased debt to Gazprom is one of the ways to artificially reduce the demand for foreign currency at the foreign exchange, and to postpone further devaluation of the ruble. In the short term, this policy is effective, but in the long run has two problems: 1) the proceeds from the privatization of Beltransgaz will be swallowed by the accumulated debt, and 2) the new lower price of gas has not yet been confirmed by the Russian leadership, potentially it could be an unpleasant surprise for the financial authorities of the country.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.