Belarus to sell gas pipeline to Russia: report

MINSK: Belarus plans to sell its stake in the country's gas pipeline network to Russia for $2.5 billion and to unify rouble exchange rates once it receives a bailout loan from Moscow, Prime Minister Mikhail Myasnikovich has said.

Russia this week urged Belarus to sell state assets to complement a planned $3.0-$3.5 billion loan that could be agreed in early June and help the former Soviet republic overcome a currency crisis.

"The Russian side is ready to buy our stake in (pipeline operator) Beltransgaz for $2.5 billion," Myasnikovich told state news agency Belta late on Friday.

The deal would give Russia complete control over Belarus'pipeline network which tranships Russian gas to Europe.

Russia's Gazprom paid the same sum for the 50 percent stake in Beltransgaz that it acquired through a series of purchases between 2007 and 2010.

Myasnikovich said Belarus could receive the first $800 million tranche of the bailout loan this summer.

This would allow Belarus to unify the official exchange rate, which now stands at 3,145 roubles per dollar, and the free floating interbank market rate which has reached about 8,000 per dollar, he said.

"Once we receive the loan the exchange rate will be based on supply and demand," Myasnikovich said.

Copyright Reuters, 2011