BELARUS NEWS AND ANALYSIS

DATE:

11/01/2007

EU wants Russia, Belarus to end dispute

BRUSSELS, Belgium

The European Union will act to press Russia and Belarus to "completely" resolve an oil pipeline dispute as supplies started flowing after a three-day suspension, the bloc said Thursday.

Russia resumed pumping oil to Europe via Belarus on Thursday days after it shut off supplies in a dispute between the former Soviet neighbors that has left lasting doubts in European capitals about Russia's dependability as an energy supplier.

"We welcome the information that oil flows have resumed as signs of progress but continue calling on both sides to reach an immediate and complete resolution of all outstanding issues and guarantee reliability of future deliveries through the pipeline," said a joint statement from EU Energy Commissioner Andris Piebalgs, German Economy Minister Joachim Wuermeling and International Energy Agency Executive Director Claude Mandil.

EU nations had started to take emergency measures, meeting Thursday to discuss oil stocks and agree how they could pool supplies if one part of the region suffers shortages.

They said the EU currently has more than 120 days worth of oil in emergency storage "ensuring undisrupted supplies for EU consumers."

The cutoff of Russian oil, only a year after a Russian dispute with Ukraine disrupted Europe's gas supply for a short while last winter, deepened EU concerns about its dependance on Russia for a quarter of its oil and over two-fifths of its natural gas.

On Wednesday, it tabled a plan to cut energy use, widen the energy sources it draws on and develop more homegrown power -- such as renewables -- in an effort to cut its reliance on imported oil and gas and slash greenhouse gas emissions.

Piebalgs also warned Wednesday that the dispute will have lingering effects on the EU's relations with both nations. He said it would take "some time" to restore trust.

Source:

http://www.businessweek.com/ap/financialnews/D8MJ2M100.htm