Russian gas giant Gazprom and Belarus signed an agreement on gas supplies to the country in 2007 in last-minute talks, averting a threatened gas cutoff to Belarus, Russian news agencies reported early Monday.

Gazprom chairman Alexei Miller was quoted as saying after talks which dragged on until midnight that Belarus would buy gas at 100 U.S. dollars per 1,000 cubic meters in 2007, more than doubling what Belarus paid in 2006 for Russian gas.

The deal was clinched in the last minutes of the past year -- 11:58 p.m. Moscow time (2058 GMT) on Sunday, Miller added.

Miller said Gazprom would buy a 50-percent stake in Belarus' gas transport company Beltransgaz for 2.5 billion dollars with cash to be paid down in four years.

Gazprom and Belarus also agreed on charges for Russian gas transit through Belarus to Europe. The transit fee would rise to 1. 45 dollars per 1,000 cubic meters for every 100 kilometers next year from the 0.75 dollars Gazprom previously paid.

Belarus was buying gas from Russia at 46.7 dollars per 1,000 cubic meters in 2006. Prior to the final deal, Gazprom had been demanding Belarus pay 105 dollars next year, with 75 dollars in cash and 30 dollars in shares in Beltransgaz.

Gazprom had warned it would cut gas supplies at 10:00 a.m. Moscow time (0700 GMT) on Monday if no deal was reached by New Year's Day.

Russia, the world's biggest gas producer, provides about a quarter of the gas needs in Europe and about 20 percent of that gas transits Belarus, most of it to Germany, Poland and Lithuania. The rest of the gas for Europe is shipped through pipelines that cross Ukraine.

Russia has hiked the prices of gas supplied to former Soviet republics. Gazprom reached agreement with Moldova last week on a 6- percent price hike for gas supplies this year. Georgia also agreed with Gazprom to buy gas in 2007 at 235 dollars per 1,000 cubic meters, a doubling of the price it paid in 2006.

Source: Xinhua