Russia threatens to end gas supplies as dispute with Belarus

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Source: CCTV.com | 12-29-2006 09:38

Russia and Belarus are standing their ground in a deepening dispute over natural gas prices. Russia's gas monopoly Gazprom is setting the clock ticking toward a January first supply cut-off if neighboring Belarus does not agree to the gas hike.

Gazprom is demanding that Belarus pay more than twice the current price for gas next year.

Belarus warned the suspension of supplies could jeopardize deliveries of Russian gas across its territory to Western Europe. And there is no sign that the country would agree to the price increase.

Gazprom, however, is vowing not to let its customers down.

Sergei Kupriyanov, Gazprom spokesman, said, "Gazprom will do all it can to deliver a reliable and full supply of gas to our European customers through Belarussian territory. We will do everything in our power to deliver our gas without any interruptions through our pipeline network."

Gazprom is now asking Belarus to pay 105 US dollars per 1,000 cubic meters of gas, with 75 dollars in cash and the rest in assets.

In addition to raising the price, Russia wants Belarus to cede Gazprom a 50% stake in its gas distribution system.

Gazprom said it had informed Germany, Poland, and Lithuania about the developing situation, implying that deliveries to these countries may be in danger.

Editor:Du Xiaodan