BELARUS NEWS AND ANALYSIS

DATE:

02/08/2007

Belarus Prepares to Convert to Fuel Oil

Belarus intends to compensate for possible shortfalls of natural gas by increasing consumption of fuel oil. Minsk was informed by telegram of the plans of Gazprom, the Russian natural gas monopoly, to reduce gas deliveries beginning Friday. Authorities say that electric plants may cut back production and plans to form a fuel reserve for the next heating season have been postponed.

Addition consumption of fuel oil will lead to increased expenses. A Belarusian official told Interfax information agency that, due to the need to pay an import duty on oil, production of petroleum products in the republic, including heating oil, has become unprofitable and is subsidized by the government.

Gazprom has declared its intention to reduce gas supplies to Belarus by 45 percent on August 3. A company spokesman says that Belarus has not met the conditions of its agreement and has not made full payment for the gas.

Source:

http://www.kommersant.com/p-11151/gas_war/