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Belarus gas supply threatened as dispute with Russia

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Source: CCTV.com | 12-28-2006 08:54

The dispute between Russia and Belarus over gas prices is deepening. Russia's state-run gas monopoly O-A-O Gazprom insists that Belarus pay more for gas deliveries next year.

Gazprom is threatening to cut off the supply if Belarus fails to comply by January first.

But Belarus is showing no sign of backing down.

The clock is ticking toward a January the first deadline of gas supply cut-off.

Russia's gas giant Gazprom initially insisted that Belarus pay as much as 200 US dollars per thousand cubic meters of gas next year. But now, it's asking for 105 US dollars, and is not prepared to go lower.

Alexei Miller, Gazprom chairman, said, "If a gas supply contract for next year is not reached, Gazprom will have no grounds for deliveries of gas to Belarus as of 10 a-m Moscow time on January first, 2007."

It's the first time that Gazprom has named a specific hour. But the Belarus government seems fearless. It's warning that a suspension of supplies could jeopardize deliveries of Russian gas across its territory to Gazprom clients in EU member states. About 30 percent of Russian gas supplies to Europe transit through Belarus, much of it to Germany, Poland and Lithuania.

Vladimir Semashko, Belarussian 1st deputy PM, said, "There will be gas from January first. I've told you that we are interconnected. I have no contract with Mr. Miller on deliveries to Belarus from January first, and Mr. Miller has no contract on transit through Belarus. I must tell you that 44 billion cubic meters of gas transits through Belarus."

Gazprom has promised that it will supply gas for European consumers through the Russia-Belarus border in full compliance with its contracts. But the company has also sent letters to Germany, Poland and Lithuania informing them about the development of the dispute. That may be a welcome message to Belarus, that its powerful neighbor may be fidgety about the prospect of delivery disruption.

 

Editor:Du Xiaodan