BELARUS NEWS AND ANALYSIS

DATE:

03/08/2007

Gazprom postpones Belarus deadline

Source:Energy Digital

Russia's Gazprom has postponed its deadline for Belarus to pay its gas bill after a first instalment of ?93m was paid.

It had threatened to halve supplies to the former Soviet republic if the debt was not paid by today, but has now given Belarus a payment deadline of August 10.

Belarus has made a first payment of $190 million (?93 million), which is 42 percent of the $456 million that Gazprom says it owes.

A delegation from Belarus has been in Moscow attempting to secure a settlement with Gazprom.

Belarus had previously said it needed more time to pay, blaming Gazprom's doubling of the price it charged for the gas earlier in the year.

The incident is reminiscent of the supply disputes with ex-Soviet republics seen in 2005 and 2006.

Under a deal agreed at the start of year, Russia increased the price per 1,000 cubic metres of gas from $46 to $100.

The price for the first half of 2007 was set at $55, but Belarus was required to pay debts of $456m to Gazprom by 23 July.

Moscow denies accusations that it uses gas supplies to bully its neighbours. insisting that price rises last year for Belarus, Ukraine and Georgia reflect the end of Soviet-era subsidies.

Like Belarus, Ukraine was forced to start paying more for its Russian gas in 2006, but not before Gazprom reduced its supplies, leading to a knock-on reduction in gas passing through the country to western Europe.

This dispute sparked concern within European Union nations about their energy security and the future reliably of Russian gas, which now accounts for much of European requirements.

Source:

http://www.ukenergydigital.co.uk/NewsArticle.aspx?type=10&articleid=1522

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