BELARUS NEWS AND ANALYSIS

DATE:

01/08/2007

Gazprom to cut supplies to Belarus

MOSCOW, Aug. 1 (UPI) -- Russian gas monopoly Gazprom said Wednesday it will cut the amount of gas sold to and transiting through Belarus because of a contract dispute.

"In pursuance of the contract on the volumes and terms of gas supply to Belarus and transit via the territory of the Republic of Belarus for 2007 through 2011, Gazprom sent an official notification to Vladimir Mayorov, director general of Beltransgaz, on a decrease of gas supply to the Belarusian consumers due to the default on payment commitments for the gas delivered in the first half of 2007 and due to the absence of any payment guarantees," the company said in a statement on its Web site.

Daily gas supply volume to Belarus will be reduced by 45 percent starting at 10 a.m. Friday, the company said.

Belarus missed a July 23 deadline to pay the Russian company $456.16 million for supplies.

Meanwhile, Belarusian media reported that Minsk was drafting proposals to resolving the latest gas spat between the two countries.

"Belarus hopes that the problem issues that have emerged regarding future supplies of Russian gas to the country will be solved promptly," Andrey Zhukaw, an aide to the Belarusian energy minister, said Wednesday.

The comments were reported by the Belapan news agency.

The failure to pay the sum is likely to prove expensive. Russia had hiked the price of its gas to former Soviet states to near market rates, and under a deal it was agreed that Minsk would pay $55 per 1,000 cu m in the first half of the year with the difference of $500 million to be paid by July 23, Belapan reported.

Belarus must now pay $100 for 1,000 cu m of Russian gas; it previously paid $47.

Russia said it would work to ensure that gas flow to the rest of Europe would remain unaffected.

Source:

http://www.upi.com/International_Security/Energy/Briefing/2007/08/01/gazprom_to_cut_supplies_to_belarus/1019/

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