BELARUS NEWS AND ANALYSIS

DATE:

10/01/2007

Blair says Russia/Belarus energy row highlights need for energy security

LONDON (AFX) - The row between Russia and Belarus over oil transportation charges highlights the need for Britain to make sure it can meet its own energy needs independently, Prime Minister Tony Blair said.

He told the House of Commons security of supply 'will be as important in the next decade as many of the crucial security issues have been in the years past'.

'If we don't get these decisions right and get them right quickly we will pay a very very heavy price in the future.'

Russia and Belarus have reached a compromise on their dispute that has halted oil flows along a key pipeline to Europe after telephone talks between the two countries' presidents, the Belarusian presidency said.

'In the course of the conversation, a compromise was found which enables us to resolve the current deadlock, including concerning the transit of Russian oil to European countries through the territory of the Republic of Belarus,' the presidency's press service told The Associated Press.

The press service said Presidents Vladimir Putin of Russia and Alexander Lukashenko of Belarus had ordered their prime ministers to work out within two days a package of measures to resolve the dispute and submit them for approval by the two leaders on Friday.

The Kremlin could not immediately be contacted for comment.

Russia stopped stopped pumping oil to Europe via the Druzhba, or Friendship, pipeline that crosses Belarus, on Monday, accusing its neighbour of siphoning off oil. By Tuesday, the stoppage had affected supplies to Ukraine, Germany, Poland, Hungary, the Czech Republic and Slovakia.

The dispute centres on Russia's decision to impose a hefty duty on oil exports to Belarus, Moscow complaining the previous duty-free regime has been costing the Russian budget up to 4 bln usd a year.

Minsk, whose isolated regime is tied to Moscow through a loose union treaty and relies on cheap Russian energy and duty-free trade with Russia, hit back by slapping duties on Russian oil pumped across Belarus to Europe.

Source:

http://www.abcmoney.co.uk/news/1020073850.htm